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2002issue C031-3

Constructing TRIX from triple-smoothing to signal rules

TRIX is the percent rate of change of a closing-price series after triple-smoothing. Build that oscillator first, then treat the zero-line cross, an MACD-style signal line, and price-indicator divergence as competing readouts of the same series.

  • TRIX is the percent rate of change of a closing-price series that has already been passed through three successive exponential moving averages.
  • Triple-smoothing applies the same-length exponential average three times in sequence, then a one-interval rate of change is taken of the third average.
  • Zero-line cross, a shorter signal line, and price-indicator divergence are separate rules on the same oscillator, not a single combined signal.
  • Changing the nested average length and the percent-change interval tunes how often the oscillator signals and how long a trend it is meant to stay with.
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Current trackTRIX15 readingsMACD115 readingsPrice-indicator divergence142 readings

Build the oscillator before choosing a readout

TRIX is constructed as the percent rate of change of a triple-smoothed exponential moving average of closing price. Triple-smoothing applies the same-length exponential average three times in sequence so each pass is taken on the previous average, not on raw price.

The build order is an n-period exponential average of the close, an n-period average of that result, an n-period average of the second result, then the one-interval percent change of the third average. That last step is a one-interval rate of change: the percent change of the third smoothed average over one sampling bar of whatever chart interval is in use.

Nine-period and twelve-period lengths are presented as common choices for each nested exponential average.

Three readouts of the same series

The finished series oscillates around a zero line. A cross above is treated as a long condition and a cross below as a short condition. That zero-line cross treats a move through the midline as the primary long or short condition.

A shorter moving average of TRIX can replace the zero-line rule, turning the same construction into an MACD-style pair. The shorter average is the signal line. A twelve-period TRIX with a nine-period signal line is one cited pairing.

Positive or negative divergence between closing price and TRIX is offered as a separate timing rule from the zero-line or signal-line cross. Price-indicator divergence is a mismatch in successive highs or lows between closing price and TRIX, used as an early reversal hypothesis rather than a midline cross.

TRIX on Nasdaq 100 Trust, May 2001–January 2002

The oscillator barely clears zero in early August, slips back under the midline and keeps falling into a late-September trough, then recrosses zero on 12 October 2001 as QQQ leaves its crash low. Points are visual readings of the red TRIX pane on the source daily chart, not a recomputed formula.
The oscillator barely clears zero in early August, slips back under the midline and keeps falling into a late-September trough, then recrosses zero on 12 October 2001 as QQQ leaves its crash low. Points are visual readings of the red TRIX pane on the source daily chart, not a recomputed formula.Nasdaq 100 Trust (QQQ) · daily · 2001-05-07T00:00:00.000Z to 2001-12-31T00:00:00.000Z

MetaStock pane is labeled TRIX (18,1000). Values are approximate to about 0.1 because they are read off the raster, not taken from a table. The 12 October zero cross is the date the article names.

Length, interval, and what the midline assumes

Changing the nested average length and the percent-change interval is described as the way to tune how often the oscillator signals and how long a trend it is meant to stay with.

In a range-bound example, a zero-line buy can reverse when the oscillator recrosses back below zero, showing that the midline rule assumes a developing trend.

A staged reading can treat a bounce from a TRIX trough as an initial condition, a later zero-line cross as confirmation, and a rollover from a TRIX peak as a reason to reduce the position.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
11 of 15 in the TRIX track
20021-3 pp.Next on TRIXLock the TRIX construction before reading a zero-line crossTRIX is a constructed momentum series formed by stacking nested exponential averages of a chosen price input, then reading the result against a zero reference.
All readings on this track · 15 readings
  1. 1984Constructing TRIX from a cutoff to one shared alpha
  2. 1988Isolate nested formulas before judging signals
  3. 1992Constructing TRIX from triple exponential smoothing
  4. 1992Constructing a TRIX oscillator from daily declines
  5. 1992A pre-trade checklist that stays flat until weekly support and TRIX agree
  6. 1992Constructing TRIX as triple-smoothed log-price momentum
  7. 1992Building TRIX crossover and momentum entries on a period grid
  8. 1992TRIX lookback and momentum derivative parameters
  9. 1994Seeding TEMA and DEMA with time-trend regression
  10. 1997Constructing the TRIX oscillator from triple smoothing
  11. 2002Constructing TRIX from triple-smoothing to signal rules
  12. 2002Lock the TRIX construction before reading a zero-line cross
  13. 2003Constructing TRIX from nested exponential averages
  14. 2004Construct TRIX entry, exit, and rest windows as one recipe
  15. 2004TRIX momentum and fundamental overlays for medium-term stock selection
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Also on TRIX5 readings
1984Constructing TRIX from a cutoff to one shared alpha1988Isolate nested formulas before judging signals1992Building TRIX crossover and momentum entries on a period grid1992Constructing a TRIX oscillator from daily declines1992Constructing TRIX as triple-smoothed log-price momentum