Trix Oscillator: Triple Smoothing and Signal-Line Crossovers
Summary
Trix measures the rate of change in a price series after applying three moving-average passes. The document describes configurable averaging methods and periods, then derives a signal line by averaging Trix itself; the histogram is the difference between Trix and that signal line. This construction is intended to smooth price movement while tracking changes in direction.
The stated trading rule is to consider buying when Trix crosses upward through its signal line below zero, and selling when it crosses downward above zero. A histogram color change may provide an earlier indication of a line crossover or help identify price pullbacks. The document supplies formulas and attributes the equation to a published trading-systems book. It does not present backtests, performance measurements, or risk controls, so the rules are indicator guidance rather than evidence of a profitable strategy.
Key ideas
- Trix calculates the rate of change of a price series after three moving-average passes.
- A signal line is formed by averaging Trix, and the histogram is the difference between the two lines.
- The suggested buy setup is an upward signal-line cross while Trix is below zero.
- The suggested sell setup is a downward signal-line cross while Trix is above zero.
- Histogram color changes may precede line crosses, but the document provides no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.