TRIX Indicator
TRIX, short for Triple Exponential Average, is a momentum oscillator developed by Jack Hutson in the early 1980s. It applies exponential smoothing three times to the price and then measures the rate of change of the result. The triple smoothing filters out market noise while preserving meaningful momentum. Indian swing traders use TRIX to confirm trend direction and identify subtle divergences.
Key takeaways:
- TRIX uses three layers of exponential smoothing before computing rate of change.
- Plotted as a single line that oscillates around zero.
- Default period is 14 or 15; many traders also plot a signal line (EMA of TRIX).
- Zero-line crosses and signal-line crosses are the two main trade signals.
- Excellent at filtering short-term noise in trending stocks.
How TRIX is constructed
- Take an N-period EMA of closing prices.
- Take another N-period EMA of that result.
- Take a third N-period EMA of that.
- Calculate the percentage change between the latest triple-smoothed value and the previous one. This is TRIX.
Signals from TRIX
- Zero-line cross: TRIX crossing above zero = bullish; below zero = bearish.
- Signal-line cross: Adding a short EMA of TRIX produces a signal line — crosses indicate short-term momentum changes.
- Divergence: Price highs without TRIX highs warn of weakening momentum.
- Trend confirmation: Persistent positive TRIX confirms an uptrend.
TRIX vs MACD
| TRIX | MACD | |
|---|---|---|
| Smoothing | Triple EMA | Two EMAs (difference) |
| Output | Rate of change of smoothed price | Difference between EMAs |
| Sensitivity | Lower (better noise filter) | Moderate |
Worked example
Reliance enters an uptrend. TRIX crosses above zero, confirming positive momentum. As long as TRIX remains positive and rising, trend followers stay long. When TRIX rolls over and crosses below its signal line, traders tighten stops or exit partial positions.
Settings for Indian markets
- Default 14 for daily charts works well across Nifty 50 stocks.
- Intraday traders may use 9 for faster signals.
- Positional investors stretch to 25 or 30 for weekly charts.
Limitations
TRIX is a lagging indicator because of the heavy smoothing — entries can be late. It also performs poorly in choppy markets, where short-term zero-line crosses produce whipsaws. Use TRIX alongside trend-strength indicators like ADX or moving averages.
Frequently asked questions
How is TRIX different from a single EMA?
A single EMA is just smoothed price. TRIX smooths three times and measures the rate of change — focusing on momentum, not level.
Is TRIX leading or lagging?
Lagging — but the lag is more controlled because of the noise filter.
Can I trade TRIX alone?
Most successful users pair it with trend filters and confirmation tools.
What is the optimal signal line for TRIX?
A 9-period EMA of TRIX is common, mirroring the MACD signal line convention.
