Triple Exponential Average Oscillator
Market irregularities, its constant deceptive maneuvers and oscillatory movements around an invisible axis are the main reasons for losses for most traders.
It would seem that the entire trading process comes down to identifying a trend and opening a trade in its direction.
However, in practice, kickbacks are perceived as new trends, and side kicks are perceived as something separate, and not as a regular break that players took for a while.
The so-called market noise is to blame, which can be combated in several ways.
Change the principle of presenting information, as happens with the use of Renko charts, or average the price, using the average price as the basis for analysis.
Triple Exponential Average (TRIX) is an oscillator developed by renowned technical analyst and trader Jack Hutson, based on triple price smoothing, which eliminates as many price fluctuations as possible and presents price movement as a solid line.
In practice, the indicator perfectly captures current price movements, allowing it to be used as a momentum indicator and to track trend changes.
This feature makes the Triple Exponential Average universal, as it can be successfully used on any currency pairs, metals, and CFDs, with no correlation between its effectiveness and the time frame used.
This, in turn, means that TRIX is ideal for scalping and for identifying promising entry points for long-term traders and investors.
Installing the Triple Exponential Average
script was created for the MT5 trading terminal back in 2010, when the terminal was just beginning to develop and become widely accepted by traders and brokers.
This is why this script was among the first files to be posted in the official library. Thanks to this, installing TRIX takes no more than a couple of minutes, as you don't even need to download any files.
The installation process can be broken down into just three steps. The first step is to open your platform and access the library itself, which is easy to find as it's located in the same window as your balance information.
The second step involves further sorting the resulting file list, specifically sorting it so that the list consists exclusively of indicators, and by date added.
The third step is the final one: simply load the indicator using the additional menu, as shown in the image below:
If the above installation method doesn't suit you for any reason, you can always download the indicator file from our website and save it to the "Indicators" folder.
After restarting MT5, the platform will automatically update, and the Triple Exponential Average will definitely appear in the list of indicators.
Using TRIX in Real Trading
: Jack Hutson, the creator of TRIX, positions this indicator as an excellent tool for detecting overbought and oversold market conditions.
However, its application differs from that of other oscillators, such as RSI or Stochastic . It uses only one signal level, which is also responsible for trend delineation, since the tool is based on a moving average.
Therefore, if the line crosses 0.00000 from below, open a buy trade, and if it crosses the same level from above, open a sell trade.
It's also worth remembering that if this line is above 0.0000, the global trend is upward, and if it's below, the global trend is downward.
Traders use this ability to determine the global trend to filter their trades, so that they only open positions in the direction of the global price movement.
Like other oscillators, the script can also predict reversals by showing the discrepancy between its data and price behavior, also known in professional circles as divergence.
So, if a trend has reached a new low, and the trough formed by the TRIX is shown above the previous one, the trend will reverse upward.
When a trend forms a new high, and the TRIX oscillator peak shows it as below the previous one, the trend will reverse downward. A basic example of two divergences on the same chart:
The Triple Exponential Average is the most effective oscillator, allowing you to average the price and smooth out market noise. However, this informational benefit comes at the cost of a lagging indicator line and a complete lack of signals during small price fluctuations.
Therefore, if your goal is to catch major trend changes, this tool is ideal for this task.
Download Triple Exponential Average
