T3-Smoothing the Log-Price TRIX Momentum Oscillator

Summary

The document describes TRIX, a momentum oscillator based on the percentage rate of change of a triple-smoothed moving average. Repeated smoothing is intended to filter out smaller price fluctuations. It attributes the indicator’s development to Jack Hutson in the early 1980s and notes that his original description applies a logarithm to price, a detail omitted in some implementations.

This variant preserves the log-price approach but replaces the conventional exponential moving average used for smoothing with the T3 moving average, producing additional smoothing. The text explains the indicator’s construction and design rationale, but provides no entry or exit rules, parameter settings, market examples, or backtest evidence. Smoothing may reduce noise while also changing signal responsiveness; the source does not assess that tradeoff or establish that this version improves trading results.

Key ideas

• TRIX measures the percentage change in a triple-smoothed moving average.
• Triple smoothing is intended to filter relatively small price movements.
• The described formulation applies logarithms to price, a detail some implementations omit.
• This variant uses T3 smoothing in place of the conventional exponential moving average.
• The document explains indicator construction but supplies no trading rules or performance evidence.

Tags

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