TRIX Indicator
The RSI, or Relative Strength Index, is one of the most popular momentum indicators used by traders across all markets. It doesn’t just show whether something is rising or falling—it tells you if the price has moved too far, too fast. In other words, it helps you spot overbought and oversold conditions before the market snaps back.
Created by J. Welles Wilder, the RSI has stood the test of time because it works across all timeframes and trading styles—from scalping crypto to swing trading forex to analyzing stock setups.
Because it smooths the data three times before generating signals, it gives you a much cleaner read than most traditional oscillators. This makes it a favorite for those who prefer trading with clarity, not chaos.
How the TRIX Indicator Works
So, how does it work?
First, the TRIX applies an Exponential Moving Average (EMA) to the price. Then, it smooths that line again. And once more — a triple smoothing. After that, it calculates the rate of change of that final smoothed line. This final step produces the TRIX line.
The result? A sleek momentum line that moves above and below zero, filtering out false signals while giving you a sharper view of real shifts in trend.
Here’s how to read it:
| TRIX Value | What It Means |
|---|---|
| Above 0 | Bullish momentum is building |
| Below 0 | Bearish pressure is gaining control |
| Cross above 0 | Upside shift — potential buy signal |
| Cross below 0 | Downside momentum — potential sell signal |
You can also add a signal line (often a 9-period EMA of TRIX) to catch crossovers — very similar to how MACD is used.
How Traders Use It
Rather than relying on price alone, many traders turn to TRIX to confirm whether a move has momentum behind it. Because of its triple smoothing, it avoids reacting to every price tick, which makes it extremely effective in trending markets.
Here’s how traders usually apply it:
Crossover Signals
Buy when RSI drops below 30 and then moves back above it. Sell when RSI crosses back below 70 after being above it.
Divergences
If price makes a new high but TRIX fails to follow, that’s often a sign of weakening strength.
Trend Confirmation
TRIX is excellent for confirming the trend after a breakout or during a pullback. If TRIX stays above zero, you know the trend is likely healthy.
And because it’s based on rate of change, it also adapts well to different assets and timeframes.
Example Setup
Let’s say you’re watching a stock that recently broke out of a consolidation range. Price is climbing, but you want to make sure the move is real — not just a quick pump.
You glance at TRIX.
It just crossed above the zero line and is curving upward. That’s your green light. It tells you that the underlying trend is picking up real momentum. You enter confidently, and as TRIX continues rising, you ride the move — letting the indicator keep you in while others get shaken out.
On the flip side, maybe price is pushing to a new high, but TRIX starts falling. That’s your bearish divergence — a signal to either tighten stops or prepare for a reversal.
Pros and Cons of Using TRIX
Pros
Smooths out short-term noise for better clarity
Great at confirming trends and avoiding whipsaws
Helps you stay in strong moves longer
Clear and simple structure around the zero line
Cons
Can react slowly in fast-moving markets
Not ideal for scalping or ultra-short-term setups
Needs confirmation from price or volume for best results
When to Use the TRIX Indicator
The TRIX really shines when markets are trending — especially on higher timeframes like 1-hour, 4-hour, or daily. If you’re tired of getting faked out by noise or over-sensitive indicators, TRIX can help you focus on the bigger picture.
Use it to confirm entries, spot early exits, or stay in trades longer with more confidence. When you pair TRIX with solid price action and volume context, you’ve got a clean and powerful momentum strategy on your side. Now lets move on with our next indicator. The Detrended Price Oscillator (DPO)