Indicator Trix is used in determining of the overbought/oversold market conditions. You can also use it as an impulse indicator. Like in other oscillators, the values of Trix range near zero. When Trix is used as an oscillator, a positive value says for the overbought market, whereas a negative values testifies the oversold market.
When Trix is used as an impulse indicator, a positive value means that the impulse is growing, whereas a negative value will testify a sinking impulse.
Many analysts suppose it to be a signal to buy, if Trix intersects zero value from top to bottom, whereas the intersection of it from bottom to top is considered as a signal to sell. If there is a divergence between the price and indicator line, this informs about a turning point in the market trend.
|Input||Type|| Default value
| Price ||Number||Close|| Price type for calculations |
|Length||Number||18|| Amount of bars for calculations|
Example: In order to assign the value of indicator TRIX to a variable for High price of 14 bars, you should use the following code: Var1 = TRIX(High,14);