Best method to identify trend in forex - page 8

Renato Takahashi
2454
I´d like to know if TRIX also can be a useful indicator to identify trend.
Sergey Golubev
Moderator
123411
Sergey Golubev  
Renato Takahashi:
I´d like to know if TRIX also can be a useful indicator to identify trend.

About TRIX -

Forum on trading, automated trading systems and testing trading strategies

Indicators: Triple Exponential Average (TRIX)

Sergey Golubev, 2013.09.04 20:50

Triple Exponential Average (TRIX)

The Triple Exponential Average (TRIX) is an indicator used to identify divergences and overbought and oversold conditions, as well as give buy and sell signals. The TRIX is helpful because it tends to filter out short-term noise.

A 9-day TRIX is shown below in the chart of the E-mini S&P 500 Futures contract:


TRIX Buy Signal

Buy when the TRIX crosses above the zero line.

TRIX Sell Signal

Sell when the TRIX crosses below the zero line.

The buy and sell signals are for entries. Using the above buy and sell signals for exits could prove profitless. A trader could consider exiting a long entry when the TRIX enters the oversold area and begins to turn downwards toward the zero line. Likewise, a trader could exit a short when the TRIX enters the oversold area and begins to turn upward and move toward the zero line.

Another valuable use of the Triple Exponential Average is to confirm price action or not confirm price action through divergences.

TRIX Divergences

The Triple Exponential Average (TRIX) is an effective indicator used to identify divergences as well as confirm price action.

  • Confirmation: TRIX is rising and the price of the stock, currency, or future is rising. Likewise, when the TRIX is falling and the market price is falling.
  • Divergence: TRIX is rising or neutral and the market price is falling; or TRIX is falling or neutral and the market price is rising.

Confirmations and divergences are shown below in the chart of the E-mini S&P 500 Futures contract:


Low #1 to Low #2

The E-mini S&P 500 Futures contract made a higher low and was likewise confirmed by the TRIX indicator making a higher low as well.

High #1 to High #2

The e-mini future managed to make higher highs; however, the Triple Exponential Average made a quite noticeable lower high and low. This bearish divergence warned that prices might change course and that traders would do well to reduce their long positions.

The TRIX making lower highs combined with the e-mini's double top formation and subsequent neckline break would also be a powerful indication that the recent price rise was likely over.

Low #3 to Low #4

During the S&P 500 e-mini's downtrend, it managed to make a significant lower low. In contrast, the Triple Exponential Average made equal lows, generally a sign that a price bottom was forming. Astute traders would see this TRIX divergence and would begin to buy to cover their short positions.

The Triple Exponential Average (TRIX) screens out short-term volatility and hence, is a valuable tool for medium and longer-term periods for uncovering divergences in price as well as giving easy to understand buy and sell signals.

MQL5 Reference → Technical Indicators → iTriX
Documentation on MQL5: Technical Indicators / iTriX
Documentation on MQL5: Technical Indicators / iTriX
  • www.mql5.com
iTriX - Technical Indicators - MQL5 Reference - Reference on algorithmic/automated trading language for MetaTrader 5
[Deleted]  
The answer is very clear. That there is now way to identify the trend. If you can do so? you can be billionaire just over night. But try to make a strategy with complete planning that if market goes worse then what would you do and what would be your action.
subu putatunda
9
subu putatunda  
Renato Takahashi:
I´d like to know if TRIX also can be a useful indicator to identify trend.
Howbto install trix in mq5 platform
Sergey Golubev
Moderator
123411
Sergey Golubev  
subu putatunda:
Howbto install trix in mq5 platform
Many TRIX indicator in CodeBase for MT5 (free to download by source codes and free to install -
search results links here
Stephen Nidea
33
Stephen Nidea  
hmmm. a combination of several indicators will do, 
EMA, ADX and ichimoku
Sergey Golubev
Moderator
123411
Sergey Golubev  
subu putatunda:
Howbto install trix in mq5 platform

Example:

----------------

TRIX Color - indicator for MetaTrader 5

TRIX Color - indicator for MetaTrader 5

ITRIX (Triple Exponential Average, TRIX) indicator in the form of a colored line: the color is determined by the position of the indicator relative to zero. The crossing points are additionally highlighted with icons - arrows in the direction of the signal
100031
5
100031  
Keith Watford:

So you meant that higher highs with lower lows indicates an uptrend

that doesn't make sense to me.

and the opposite

lower highs and higher lows indicates a downtrend?

doesn't make sense either.

It should be 2 higher high and higher low for uptrend and for downtrend 2 lower high and lower low

Sergey Golubev
Moderator
123411
Sergey Golubev  

Market condition

  • the theory with examples (primary trend, secondary trend) - read staring from this post till this one
  • Summary about market condition theory is on this post 
  • Practical examples about every market condition case by indicators: starting from this page till this one
     
  • trendstrength_v2 indicator is here,
     
  • AbsoluteStrength indicator new version is here
  • AbsoluteStrength indicator old version is on this post

  • AbsoluteStrengthMarket indicator is here to download.

  • good feature in Metatrader 5: moving  stop loss/take profit by mouse on the chart (video about howto) 

  • predictions are very different thing from technical/fundamental analytsis the post with explanation 

  • Technical vs. Fundamental; Short-Term vs. Medium-Term vs. Long-Term; Discretionary vs. Automated - the post

  • Market condition setup (indicators and template) is here
Market Condition Evaluation based on standard indicators in Metatrader 5
Market Condition Evaluation based on standard indicators in Metatrader 5
  • 2012.12.31
  • www.mql5.com
I just started this thread as a continuation of the talking made on this topic (we can read it). Or...
reece123
13
reece123