TRIX is a momentum oscillator that shows the percentage rate of change of a triple-smoothed exponential moving average of the close. The triple smoothing strips out short, minor price swings, so what is left is the direction and pace of the underlying trend. TRIX oscillates around zero: above zero the smoothed price is rising, below zero it is falling. It was developed by Jack Hutson in the early 1980s.
How it is calculated
EMA1 = EMA(close, N)
EMA2 = EMA(EMA1, N)
EMA3 = EMA(EMA2, N)
TRIX = 100 × (EMA3 − EMA3 one bar ago) / EMA3 one bar ago
Signal line = moving average of TRIX (commonly 8 or 9 bars)
Smooth the close three times with the same N-period exponential average, then take the one-bar percentage change of the result. Each round of smoothing removes more noise and adds more lag, so TRIX turns later than price but rarely flips on a single bar. Because the final step is a percentage, TRIX values can be compared across stocks at different price levels.
How to read it
- Zero-line crosses. TRIX crossing above zero means the triple-smoothed average has started to rise: a slow but fairly reliable sign that the trend has turned up. A cross below zero is the bearish version.
- Signal line crosses. Like MACD, TRIX is often paired with a moving average of itself. TRIX crossing above its signal line is an earlier buy signal than the zero cross; crossing below is an earlier sell signal.
- Turns. Because the line is so smooth, a change in TRIX’s direction is itself a signal: rising TRIX means the trend is gaining pace, falling TRIX means it is losing it, even while still above zero.
- Divergence. Price makes a new high while TRIX makes a lower high (bearish), or price makes a new low while TRIX makes a higher low (bullish). It warns that the trend behind the move is weakening.
Settings and common mistakes
- Period. 14 to 15 bars is common for daily charts, with an 8 or 9-bar signal line. Shorter periods give earlier but noisier signals; 20 to 30 bars suits longer-term trend following.
- Using it in sideways markets. TRIX is a trend tool. In a range, the line hovers near zero and crosses its signal line back and forth, producing a string of small losses. A trend filter such as the 200-day average or ADX helps.
- Expecting early entries. Triple smoothing means TRIX confirms a trend rather than catching its first days. Signal line crosses are the faster option if that matters.
- Confusing it with the triple EMA (TEMA). TEMA is a fast moving average built from single, double and triple EMAs. TRIX is the rate of change of the triple-smoothed average and is plotted as an oscillator below the price.
Live chart: SPY (S&P 500 ETF), daily, with TRIX (14) and an 8-bar signal line. The chart updates every trading day.
Screen for it on MarketInOut
TRIX is trix(period, signal_period) in our formula language, and its signal line has its own events (casl crossed above, cbsl crossed below). Stocks in a long-term uptrend where TRIX just crossed above its signal line:
exch(nyse,nasdaq) and type(stock) and price > 1 and advol(21) > 1
and price > sma(200) and trix(14,8) casl
Stocks above their 200-day average whose TRIX just crossed above zero:
exch(nyse,nasdaq) and type(stock) and price > 1 and advol(21) > 1
and price > sma(200) and trix(14,8) ca 0
Related: MACD, Price Rate of Change, Moving averages.
