TRIX indicator: how to trade and profit with this instrument

TRIX (Triple Exponential Average) is a pulsed instrument that perfectly filters market noise and identifies current trends.

In the 1980s, financial analyst Jack Hutson developed the TRIX indicator based on exponential averages. Author has improved the performance indicators of the instrument by smoothing short-term price fluctuations. The modified indicator is more accurate than the classic moving average that is its main advantage. This is evidenced by the results of numerous profitable deals and successful tests of the oscillator.

Today, the TRIX indicator is a popular assistant to traders. Therefore, it is included in the instrumental bars of many platforms, including IQ Option.

TRIX indicator

How to run and configure the TRIX instrument?

User must perform the following steps to run the assistant on the IQ Option platform:

  1. to click on the indicators icon, which is located in the lower left corner of the trade room and call the corresponding menu;
  2. in the menu open submenu (Momentum);
  3. to select TRIX from the list and launch the indicator.

Procedure for launching the indicator on IQ Option platform

The instrument settings window will open.

TRIX Settings Window

The settings of this oscillator are divided into basic and graphic blocks (colours and displays). In the basic parameters, user can set the period, select the value for the variable (source) and the type of moving average. In the tab of graphic parameters, trader has options for colour and thickness of instrument lines.

Indicator will launch after the user applies the settings. Instrument will be located under the price chart and will operate within a separate scale.

TRIX consists of two graphic elements:

  • main line (signal line);
  • base line (zero level).

The elements of TRIX

An inexperienced trader is recommended to save the default settings of indicator, as they are optimal for all markets and timeframes.

How to trade with TRIX on the IQ Option platform?

TRIX is quite a simple and accurate instrument. When the main line of indicator moves above the zero level, it is considered that an upward movement is now in effect. And, vice versa, when the signal line passes below the base level, then there is a downward trend in the market.

Traders distinguish three main indicator trading signals.

  1. Turn of main line during the formation of vertex on the oscillator scale.

Signal 1. Reversal of the oscillator line

  1. The intersections of baseline and the signal line indicator.

Signal 2. Crossing main line and zero level

  1. Divergence or convergence. The phenomenon is typical for most oscillators.

Simple trading strategy with TRIX.

  1. When the main line intersections the base level from above and continues moving, the trader must sell the asset.
  2. When the signal line intersections the zero level from the bottom and moves upwards, the trader needs to buy.
  3. Trader needs to close active deals during the crossing in the opposite direction zero level. In other words, when the indicator line approach the zero line from the top down, then needs stop active purchases. And, when the indicator line approach the base level from the bottom up, then needs stop active sales.

TRIX Trading Strategy

Summary

TRIX indicator is easy to understand and effective to use. However, traders need to test the instrument on historical quotes and a demo account before relying on i signals of this assistant and trading with real money. Only such an approach to trading will help to make a profit and keep the main deposit.

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.

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