Constructing Smoothed TRIX Candles from OHLC Values

Summary

The indicator constructs candles by applying the TRIX oscillator separately to the open, high, low, and close price series. Because TRIX is based on triple exponential smoothing, the resulting candle display is described as smooth. The document proposes using changes in candle color as potential trading signals.

No precise color rules, entry or exit conditions, market, timeframe, or parameter settings are supplied. The material also gives no examples, backtest results, or comparison with ordinary price candles. Color changes therefore serve only as a suggested signal concept; the text does not establish whether they predict returns or how they perform after trading costs. Traders would need to define the signal and evaluate it on suitable data before drawing conclusions.

Key ideas

• The indicator applies TRIX separately to open, high, low, and close prices to form candles.
• Triple exponential smoothing gives the displayed candles a smoothed character.
• Color changes are suggested as possible signals, but their trading rules are not defined.
• The document supplies no performance evidence or parameter guidance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.