Triple Exponential Average (TRIX) is an indicator used to identify divergences, instances where a currency pair is overbought/oversold, and to give buy/sell signals. The TRIX is a momentum indicator, that is displayed as an oscillator above and below a zero line. It compares two triple smoothed exponential moving averages, and displays the difference as a single line with positive and negative values. The TRIX is displayed on its own chart, separate from the price bars.
Methods of use:
1. When the TRIX crosses the zero line from below it is a buy signal.
2. When the TRIX crosses the zero line from above it is a sell signal.
Note: The buy and sell signals are for market entries. Using these buy and sell signals for exits may not be profitable.Traders might consider exiting a long entry when the TRIX indicator enters the oversold area and starts to turn downwards toward the zero line. Similarly, traders could exit a short when the TRIX indicator enters the oversold area and starts to turn upward and move toward the zero line.
