The TRIX indicator, or Triple Exponential Moving Average, is a technical analysis tool used to identify the rate of change of a triple exponentially smoothed moving average. It helps in spotting overbought or oversold conditions in the price of a security or index, and can also signal the beginning or end of a trend.

Syntax:

TRIX[N](price)

This function calculates the TRIX value over the last N periods for the given price.

Example:

myTRIX = TRIX[14](close)

This example computes the TRIX using the last 14 periods of the closing price.

Calculation:

• First, compute the Exponential Moving Average (EMA) of the selected price for three periods.
• Next, calculate the EMA of the EMA obtained in the first step, again over three periods.
• Calculate the EMA a third time based on the result from the second step, over three periods.
• The TRIX is then derived by calculating the percentage rate of change between the last two values from the third EMA calculation.

Interpretation:

The TRIX oscillates around a zero line. Its main signal line is often smoothed with a moving average to filter out insignificant movements and highlight significant trends. A positive TRIX value suggests an upward trend, while a negative value indicates a downward trend. Divergences between the TRIX and price can also provide insights into potential price reversals.

Understanding the TRIX can help traders identify potential buy and sell signals based on the direction and changes of the trend, without specific trading or financial advice.