TRIXM for Amibroker (AFL)

zaroldo

over 14 years ago

Amibroker (AFL)

TRIX or Triple exponential momentum technical indicator is a moving average based technical indicator used to smooth out price changes to find trends and trend changes. The indicator was developed by Jack Hoton. TRIX works like an oscillator indicator moving above and below the zero level. TRIX is the comparison of two triple smoothed exponential moving averages for a certain time period.

TRIX is plotted just like any other oscillator indicator; signals are generated when the oscillator crosses the zero line. Buy signals are generated when TRIX crosses above the zero line and sell signals are generated when TRIX crosses below the zero line. Many traders also use another exponential moving average for the same period as a signal line for finding divergences. Bullish divergence is identified when TRIX crosses above the signal line while below zero and bearish divergence is identified when TRIX crosses below the signal line while above zero.

TRIX is a very useful technical indicator as it offers very good smoothing which reduces false signals; besides, it is a leading and not a lagging indicator. Traders can adjust time periods to suit their trading style; usually active traders use a 9-day period and investors use a 30-day period. The signals generated by TRIX are generally pretty accurate and are very good to enter a trade. But traders should use other indicators or divergences to exit trades as waiting for the indicator to cross the zero line can eat up a large part of the profit.

Indicator / Formula

_SECTION_BEGIN("trixm");
N = Param( "N", 9, 2, 200, 1 );
M = Param( "M", 5, 2, 200, 1 );
MTM = Close-Ref(Close,N);
TR= EMA(EMA(EMA(MTM,M),M),M);
TRIXM = TR-Ref(TR,-1);
TRIXMA = MA(TRIXM,4);
Plot( TrixM, "TRIXM", colorBlue );
Plot( TrixMA, "TRIXMA", colorRed );
_SECTION_END();

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