A momentum oscillator that displays the percentage rate of change of a triple exponentially smoothed moving average of a security's closing price. TRIX filters out minor price fluctuations and insignificant market noise, making it useful for identifying the underlying trend direction and potential reversals. A signal line crossover or a zero-line cross is typically used as a trade trigger.
Example
“The TRIX indicator crossed above its signal line while still below zero, suggesting that bearish momentum was fading and a bullish reversal could be developing.”