TRIX is a momentum oscillator thatshows the rate of change of an exponentially averaged closing price. The mostcommon interpretation of the TRIX oscillator is to buy when the oscillatorrises and sell when the oscillator falls. 3, 8 and 14 period moving averagesare often used to smooth the TRIX oscillator. TRIX is a momentum indicator thatdisplays the percent rate-of-change of a triple exponentially smoothed movingaverage of the instruments closing price. It is designed to keep you in trendsequal to or shorter than the number of periods you specify.
The TRIX indicator oscillatesaround a zero line. Its triple exponential smoothing is designed to filter outinsignificant cycles. Trades should be placed when the indicator changesdirection (i.e., buy when it turns up and sell when it turns down). The TRIX can also help identify turningpoints. The simplest rule of trading decisions making while following thetrend- to buy, when TRIX changes direction from decreasing one to incising. Andto sell, when TRIX changes direction from incising one to decreasing.
No comments:
Post a Comment