Triple Exponential Average - TRIX

DEFINITION of 'Triple Exponential Average - TRIX'

A momentum indicator used by technical traders that shows the percentage change in a triple exponentially smoothed moving average. When Triple Exponential Average (TRIX) is applied to triple smoothing of moving averages, it is designed to filter out price movements that are considered insignificant or unimportant. TRIX is also implemented by technical traders to produce signals that are similar in nature to the Moving Average Convergence Divergence (MACD).

BREAKING DOWN 'Triple Exponential Average - TRIX'

Developed by Jack Hutson in the early 1980s, TRIX has become a popular technical analysis tool to aid chartists in spotting diversions and directional cues in stock trading patterns. Although many consider TRIX to be very similar to MACD, the primary difference between the two is that TRIX outputs are smoother due to the triple smoothing of the exponential moving average (EMA).

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RELATED FAQS
  1. What are the differences between a Triple Exponential Moving Average (TEMA) and a ...

    Although they sound similar, the triple exponential moving average (TEMA) and the triple exponential average (TRIX) are actually ... Read Full Answer >>
  2. How do I use STIX Oscillator to create a forex trading strategy?

    The STIX oscillator can be applied to forex trading by signalling when to buy when a currency is in an oversold condition ... Read Full Answer >>
  3. Why is the Triple Exponential Average (TRIX) important for traders and analysts?

    The triple exponential average (TRIX) is important for traders and analysts because it provides indications of market trends, ... Read Full Answer >>
  4. What is a common strategy traders implement when using the Triple Exponential Average ...

    A trader can use the triple exponential average (TRIX) to identify direction of momentum and potential reversals of trends. ... Read Full Answer >>
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