51 Trix

It is comprised of the rate of change of a triple exponentially smoothed moving average. The key signals generated by TRIX are divergences and signal line crossovers.

There are four components to the TRIX calculation:

  1. Single Smoothed EMA = 18 Period EMA of Closing Price.

  2. Double Smoothed EMA = 18 Period EMA of the Single Smoothed EMA.

  3. Triple Smoothed EMA = 18 Period EMA of the Double Smoothed EMA.

  4. TRIX = 1 Period Percent Change of Triple Smoothed EMA.

There is also typically a signal line which is an EMA of the TRIX line

Trix

Figure 8.68: Trix