Triple Exponential Average - TRIX

AAA

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).

INVESTOPEDIA EXPLAINS '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).

RELATED TERMS
  1. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  2. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  3. Divergence

    When the price of an asset and an indicator, index or other related ...
  4. Exponential Moving Average - EMA

    A type of moving average that is similar to a simple moving average, ...
  5. Moving Average Convergence Divergence ...

    A trend-following momentum indicator that shows the relationship ...
  6. Premium to Surplus Ratio

    Net premiums written divided by policyholders’ surplus. The premium ...
Related Articles
  1. Active Trading Fundamentals

    Simple Moving Averages Make Trends Stand Out

    The moving average is easy to calculate and, once plotted on a chart, is a powerful visual trend-spotting tool.
  2. Active Trading Fundamentals

    Charting Your Way To Better Returns

    Learn about the powerful hybrid techniques that take advantage of both technical and fundamental analysis.
  3. Trading Strategies

    Double Exponential Moving Averages Explained

    This tweak on moving averages gives traders faster access to the information they need.
  4. Active Trading Fundamentals

    Weighted Moving Averages: The Basics

    We take a closer look at the linearly weighted moving average and the exponentially smoothed moving average.
  5. Trading Strategies

    Momentum Indicates Stock Price Strength

    Momentum can be used with other tools to be an effective buy/sell indicator.
  6. Active Trading

    An Introduction To Oscillators

    Find out how this indicator may help improve the average investor's entry and exit points.
  7. Active Trading

    Candle Sheds More Light Than The MACD

    Read the case against this well-established indicator.
  8. Chart Advisor

    ChartAdvisor for December 19 2014

    A weekly technical summary of the major U.S. indexes.
  9. Trading Strategies

    What does a double bottom tell a trader about the overall trend?

    Learn how a double bottom pattern forms on a price chart and why many traders consider double bottoms to be a sign of reversal in the price trend.
  10. Trading Strategies

    What are the main differences between a double top and a double bottom?

    Identify double tops and double bottoms, and learn what each could mean for the security's current price trend. Discover how other indicators verify movements.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center