Playing TRIX: The Triple Exponential Smoothing Oscillator by Joe Luisi
Here's a look at a tried-and-true favorite, an oscillator that traders can use to determine the trend of the market.
With each technical analysis software package comes a host of technical indicators, yet more often than not, the manual accompanying the package only provides a series of one-page guidelines describing how to use each indicator. So here’s a more in-depth look at a particular indicator that’s often found in those packages, one that for the most part is overlooked but has a real use for the technician:
The triple exponential smoothing oscillator (TRIX). The value of TRIX as an oscillator lies in that it is a leading
indicator, whereas other technical tools are generally lagging indicators. TRIX leads a market because it uses a differencing function —after smoothing the data to reduce the impact of noise around the trend, the difference between each day’s smoothed version of the closing prices is measured.