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. Why is the Triple Exponential Average (TRIX) important for traders and analysts?

    Explore various indications and signals for traders and analysts that are obtained by using the triple exponential average ... Read Answer >>
  2. What are the differences between a Triple Exponential Moving Average (TEMA) and a ...

    Understand the fundamental differences between the triple exponential moving average indicator and the triple exponential ... Read Answer >>
  3. What is a common strategy traders implement when using the Triple Exponential Average ...

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  4. How do I use STIX Oscillator to create a forex trading strategy?

    Find out how to use STIX oscillator in forex trading, and understand how to use the STIX and TRIX oscillators together to ... Read Answer >>
  5. What are the differences between a Triple Top pattern and a Triple Bottom Pattern?

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