smoke: I used Dow Jones Market Analyzer Plus and Technifilter Plus to optimize and test TRIX (among many other indicators) as a trading strategy solo and in conjunction with other indicators back in the eighties. I came to the conslusion that no one indictor worked well enough to be used exclusively.
Many of the top charting and analytic software packages have TRIX. Trade Station has it and here is the synopsis...
The Triple Exponential Average (TRIX) indicator is an oscillator used to identify oversold and overbought markets and it can also be used as a momentum indicator. As is common with many oscillators, TRIX oscillates around a zero line. When used as an oscillator, a positive value indicates an overbought market while a negative value indicates an oversold market. As a momentum indicator, a positive value suggests momentum is increasing while a negative value suggests momentum is decreasing. Many analysts believe the TRIX crossing above the zero line is a buy signal while closing below the zero line is a sell signal. Also, divergences between price and TRIX can indicate significant turning points in the market.
TRIX calculates a triple exponential moving average of the log of the Price input over the period of time specified by the Length input for the current bar. The current bar’s value is subtracted by the previous bar’s value. This prevents cycles shorter than the period defined by Length input from being considered by the indicator.
Two main advantages of TRIX compared to other trend-following indicators are its excellent filtration of market noise as well as its tendency to be a leading rather than a lagging indicator. It filters out market noise using the triple exponential average calculation thus eliminating minor short-term cycles that may otherwise indicate a change in market direction. Its ability to lead a market stems from its measurement of the difference between each bar’s "smoothed" version of the price information. When interpreted as a leading indicator, TRIX is best used in conjunction with another market timing indicator to minimize the effect of false indications.
I don't use TRIX...
Regards,
LG
News 
Market Data 
Discover 
