Developed by Jack K.Hutson, TRIX is both moving averages and rate-of-change together to show a developing trend. It is a percent rate-of-change of a triple-smoothed exponential moving average of a closing price.
It is a momentum indicator which moves up over and under a zero line. A movement above indicates a long opportunity, while a movement below indicates a short opportunity.
You can 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.
Calculation:
Inputs:
Price Field = Close
Indicates Open, High, Low or Closing price.
Period = 12
Indicates time period(the number of days for daily analysis, the number of weeks for weekly analysis, etc.).
Indicator Type: Momentum, Trend