Watch the testing video here:
Any forex trader interested in the TRIX Indicator mt4, the download link is at the very bottom of this post.
For any of you that wants to know how to trade it, then keep reading.
What Is the Trix Indicator?
Trix is sometimes known as the triple exponential moving average indicator and it is based on the 1 day difference of the triple exponential moving average.
The Trix indicator is a trend following indicator-to be more precise, it is an oscillator that oscillates around zero.
One of the main advantages of the trix indicator is that it has the ability to filter out a large part of the market noise.
2 Ways On How To Trade The TRIX Indicator MT4
The trix indicator oscillates around zero therefore if the trix indicator is above, zero, that means it is an uptrend.
If the trix indicator is below the zero line, it is a downtrend.
#1: Trix Indicator Cross Over Buy and Sell Signals
This is really straight forward-once you install the trix indicator on your chart, it also generates buy and sell signals:
- light blue arrows pointing down are sell signal
- yellow arrow pointing up indicates a buy signal
#2: Trix Divergence Trading
This is when the price is making:
- higher highs in an uptrend but trix indicator is doing the exact opposite (sell setup)
- lower lows in a downtrend but the trix indicator is doing the opposite (buy setup)
Disadvantage Of The Trix Indicator
If you put the trix indicator on you chart, just look at where the buy and sell arrows form…
What you will see is that price moves first, usually by a very long distance before the trix buy and sell arrows are generated to give you the signal to buy or sell. This is one major setback of this mt4 trix indicator.
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