| DEC 1992
Looking At Momentum With TRIX by Ed Downs
Looking At Momentum With TRIX by Ed Downs The TRIX oscillator has unique properties that make it ideal for identifying direction of trend as well as cyclical entry points. Last month, Ed Downs showed us how various oscillators can be tuned to the personality of an individual stock through optimization. This month, he'll explain the use of a derivative technique using the TRIX oscillator. If you smooth an exponential moving average (EMA) I of the closing price twice (taking the EMA of the EMA of the EMA) and then plot the percentage change per period on the y-axis, you'll have one version of the TRIX. The original TRIX is the one-day difference of the triple exponentially smoothed log of the closing prices. This value is then multiplied by 10,000 to aid in plotting the line. The two different methods will plot virtually identical curves.
by Ed Downs
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.