Using TRiX Slope Divergence for Multi-Timeframe Signals

Summary

This indicator description presents TRiX, a momentum measure based on the percentage change in a triple exponentially smoothed moving average. Because the indicator responds quickly to price changes, the author argues that conventional divergence analysis can be difficult to apply. The proposed alternative compares the slopes of a price-chart channel and an indicator channel, with the middle line changing color when their slopes point in different directions. The version described supports multiple timeframes.

The text suggests using the resulting divergence in whatever way the trader ordinarily applies divergence, but it gives no entry or exit rules, parameters, examples, backtest, or performance evidence. It is therefore a brief description of a visual signal concept rather than a complete trading strategy, and the document does not establish whether the signal is reliable or suitable for any market or timeframe.

Key ideas

• TRiX measures percentage changes in a triple-smoothed moving average and is used as a momentum indicator.
• The described method compares the direction of slopes in a price channel and an indicator channel.
• The middle line changes color when those slopes disagree, marking a slope divergence.
• The indicator is described as multi-timeframe, but no trading rules or performance evidence are supplied.

Tags

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