TRIX is a momentum indicator that displays the percent rate-of-change of a triple exponentially smoothed moving average of the security`s closing price. It is designed to keep you in trends equal to or shorter than the number of periods you specify. The TRIX indicator oscillates around a zero line. Its triple exponential smoothing is designed to filter out `insignificant` cycles (i.e., those that are shorter than the number of periods you specify). Trades should be placed when the indicator changes direction (i.e., buy when it turns up and sell when it turns down). You may want to plot a 9-period moving average of the TRIX to create a signal line (similar to the MACD indicator, and then buy when the TRIX rises above its signal, and sell when it falls below its signal. Divergences between the security and the TRIX can also help identify turning points. The indicator has two parameters, the first is the period for calculating the TRIX line, and the second is the smoothing period for calculating the signal line.
