Indicator TRIX, Triple Exponential Average (TRIX, Indicator of relative change in price) is a very interesting indicator of technical analysis. The TRICS indicator was created by Jack Hutson in the distant 80s of the 20th century. The indicator, you guessed it, belongs to the trending family, as it is built on the classic Exponential Moving Averages. The main advantage of the TRIX indicator over MA is that it gives an order of magnitude less false signals. It filters out “market noise,” so to speak. When calculating the Triple Exponential Average, it excludes from the data series values related to shorter periods than the indicator period, which smooths the resulting line eliminates short-term market fluctuations from it and allows you to avoid making unnecessary movements in transactions.

The indicator of relative price changes TRIX (Triple Exponential Average) is located in a separate window of the trading terminal. Consists of line and level 0.

If the TRIX line is above level 0, this means that there is an upward movement in the market. While a value below zero indicates a downtrend. If the TRIX line is above zero and growing, the uptrend is strengthening, if lower and falling, then the falling is increasing. Everything is standard in general.

Pay attention when the line fluctuates near the zero mark, as a rule this indicates uncertainty and / or a quiet continuation of the current trend of a higher order. At such moments, it is better not to take active actions, but simply to conduct an analysis.

Some traders like to use several Indicators of relative change in price in one window. Let’s say two TRIXs of different periods, slow 14 and fast 4. This design makes it possible to trade on smaller timeframes. A signal to open a position will be the TRIX intersections. That is, we buy when a line with shorter periods has pierced a larger one from the bottom up and sell when a smaller one has pierced a large one from top to bottom. This option should be used when you gain experience, for beginners it is usually not recommended. We will not talk in detail about them, you will understand everything yourself with experience. In a nutshell, if – then the main problem is the psychology of traders. Trading “fast” you should be as prepared as possible both psychologically and technically. And these readiness comes only with experience, you can’t learn right away.

Methodology for calculating the TRIX indicator

The author recommends using period 14 when working with the indicator.

Calculation Algorithm:

1. We consider EMA (14) No. 1

2. We consider EMA (14) No. 2 on points of EMA (14) No. 1

3. We consider EMA (14) No. 3 according to points of EMA (14) No. 2

4. TRIX = (EMA (14) No. 3 on the current candle – EMA (14) No. 3 on the previous candle) / EMA (14) No. 3 on the previous candle.

The resulting value will be the TRIX chart point for the current candle.

Adding the TRIX indicator in MT

TRIX, Indicator of relative price changes (TRIX, Triple Exponential Average) is not included in the standard equipment of the MT4 and MT5 trading platforms. In order to add it, you need to copy the indicator files to the appropriate directory on your computer.

If you have MetaTrader 4. Open C: \ Program Files . Next, find the folder for the files of the trading terminal and open it. Go to the directory … \ MQL4 \ Indicators and copy the file / files TRIX, Triple Exponential Average (TRIX, Indicator of relative change in price) there.

If you have a MetaTrader 5. Open C: \ Program Files . Next, find the folder for the files of the trading terminal and open it. Go to the directory … \ MQL5 \ Indicators \ Examples and copy the file / files TRIX, Triple Exponential Average (TRIX, Indicator of relative change in price) there.

After that, launch the trading terminal. Click Insert / Indicators / Custom . A list of indicators opens. Select TRIX, Triple Exponential Average.

Option to add Trix indicator No. 2

Add files as above. Then launch MT. By default, the Navigator window is open on the desktop. Select TRIX, Triple Exponential Average (TRIX, Indicator of relative change in price) in it, as shown in the figure and drag it onto the chart of the trading instrument.

TRIX Indicator Parameters

TRIX, Indicator of relative price change (TRIX, Triple Exponential Average)

You can only change the indicator period, but the author does not recommend this, so see for yourself.

Trading system

Simple trading tactics for using TRIX, Indicator of relative price changes (TRIX, Triple Exponential Average).

Transaction for sale:

1. The TRICS line broke through the zero level from top to bottom – we sell;

2. Stop Loss set 3-5 points above the local extremum;

3. Close the deal with a return signal.

For a purchase transaction, the reverse is true.

A few simple rules in conclusion

Remember, there are no indicators on Forex that are not mistaken. TRIX, Indicator of relative price changes (TRIX, Triple Exponential Average), like any other, requires confirmation of its signals. When building your own trading system, use several indicators.

Follow Mani Management. Never in one transaction risk more than 2 percent of your capital. This approach will protect you from ruin and allow you to consistently make money on Forex using TRIX, the Indicator of relative change in price (TRIX, Triple Exponential Average).

Follow your trading strategy clearly. If, according to the TRICS strategy, the TRIX (Triple Exponential Average) indicator, you need to open a deal – open it, if you fix the result – fix it, and it does not matter if you are in the black. Only following the rules of TRIX, Triple Exponential Average (TRICS, Indicator of relative price changes) “from and to” will allow you to earn.

TRIX indicator for MT4 can be downloaded here

The TRIX indicator for MT5 can be downloaded here