TRIX | AlgoLift Guide

A triple-exponentially-smoothed rate-of-change oscillator. Filters out short-term price cycles entirely, leaving only the underlying trend momentum visible. Fewer signals than MACD, much higher signal quality.

What it measures

Filtered momentum. Triple-smoothing eliminates short-term oscillations, leaving only the dominant trend's rate of change.
Trend direction (via zero line). TRIX above zero = filtered momentum is positive (uptrend). Below zero = negative.
Crossover signals. Like MACD, TRIX has a signal line and histogram for crossover-based trade triggers — but with cleaner, less-frequent signals.

Formula

How AlgoLift computes it

EMA1 = EMA(price, period)
EMA2 = EMA(EMA1, period)
EMA3 = EMA(EMA2, period)
TRIX = (EMA3 − EMA3[t-1]) / EMA3[t-1] × 10000
Signal = EMA(TRIX, signal_period)
Histogram = TRIX − Signal

The triple-EMA smoothing filters out cycles shorter than roughly 3 × period bars. The final rate-of-change calculation (in basis points, hence the × 10000) gives a normalized momentum reading.

Developed by Jack Hutson in 1980. The "triple" smoothing is the key — single or double smoothing leaves too much short-term noise; quadruple smoothing is excessive lag for the benefit.

Inputs in AlgoLift

Setting	Default	Range	Notes
TRIX Period	15	1–200	The lookback for each of the three EMA smoothings.
Signal Period	9	1–200	The signal line's EMA period.

Recommended settings

(15, 9) — default: Hutson's original. Works well on daily and weekly charts.
(9, 5): Faster — for intraday strategies.
(20, 12): Slower — for long-horizon trend confirmation.

Outputs in AlgoLift

Handle	Type	Plotted	Notes
TRIX Line	Numeric	Always	The main triple-smoothed momentum reading.
Signal Line	Numeric	Always	EMA of TRIX. Crossovers generate trade signals.
Histogram	Numeric	Always	TRIX − Signal. Tracks momentum acceleration.
Slope	Numeric	On select	Rate of change of TRIX.

How to read it

TRIX > 0: Triple-smoothed momentum is positive — trend bias is up.
TRIX < 0: Momentum is negative — trend bias is down.
TRIX/Signal crossover: Primary trade trigger. Crosses fire less often than MACD's, with higher signal quality.
TRIX crossing zero: Slower trend-shift signal — confirms the underlying momentum has actually flipped.
Histogram sign change: Earliest signal — precedes the TRIX/Signal crossover by one bar (same algebraic relationship as MACD).

Key Takeaway

TRIX is MACD's slower, cleaner cousin. The triple smoothing kills false signals at the cost of lag. Use it when "fewer but higher-quality signals" matters more than "earlier signals" — typically on daily and weekly timeframes.

Best in / worst in

Best in trending markets on daily and higher timeframes, on instruments with clear long-cycle behavior, and as a high-quality confirmation indicator alongside a faster system.

Worst in very-short-timeframe execution (the triple smoothing creates significant lag) and in markets that reverse quickly (TRIX takes too long to catch up).

Three setups

1. Signal-line crossover with zero filter

The canonical TRIX entry.

Long: TRIX crosses above Signal Line AND TRIX > 0.
Short: TRIX crosses below Signal Line AND TRIX < 0.

The TRIX-positive filter eliminates countertrend crossovers — TRIX's strict double filter (smoothing + crossover) makes for unusually high signal quality.

2. Zero-line cross as a regime shift

Use TRIX's zero-line cross as a higher-conviction trend-change marker.

Long: TRIX crosses above 0 AND price > SMA(200).
Short: TRIX crosses below 0 AND price < SMA(200).

Fewer signals than crossovers, but each one means the triple-smoothed momentum has flipped — a real regime shift.

3. TRIX as a regime filter

Use TRIX zero-line as a binary regime gate for unrelated strategies.

Long-only mode: TRIX > 0.
Short-only mode: TRIX < 0.
Flat: TRIX between −0.05 and +0.05 (avoid taking trades during transitions).

Advanced patterns in AlgoLift

TRIX divergence with Bars Ago Modifier. Compare current TRIX against TRIX 10 bars ago, with price comparison alongside. TRIX's smoothness makes its divergences especially meaningful — when they fire, they're rarely noise.

TRIX exit for trend strategies. Use any other system for entries. Exit longs when TRIX's Histogram crosses below 0; exit shorts when it crosses above 0. The histogram flip is a clean "momentum has reversed" signal — earlier than waiting for TRIX itself to cross zero.

TRIX + MACD agreement for high-conviction entries. Run TRIX and MACD in parallel. Only allow trades when both agree on direction (both above their zero lines AND both crossing their signal lines). Two-indicator filter dramatically reduces signal count but produces very high-quality entries.

Common mistakes

Using TRIX on short timeframes. Triple smoothing at 15 bars on 5-minute data is essentially a 75-minute lag. Strategies needing intraday reaction speed should use MACD or TSI instead.
Treating TRIX as a primary momentum indicator. TRIX's value is filtration. As an only momentum indicator on a fast strategy, it's too slow. Use it as confirmation.
Tuning the periods aggressively. The (15, 9) defaults are conservative on purpose. Faster periods (e.g., 5, 3) defeat the indicator's design.

Common Misconception

Myth

TRIX is too slow to be useful.

Reality

TRIX is slow *on purpose*. The triple smoothing is a deliberate trade-off — fewer signals, much higher signal quality. For daily and weekly trend strategies, TRIX's signal-to-noise ratio is among the best in the indicator library. For intraday execution, it's the wrong tool entirely.

Next: Linear Regression

#What it measures

#Formula

#Inputs in AlgoLift

#Recommended settings

#Outputs in AlgoLift

#How to read it

#Best in / worst in

#Three setups

#1. Signal-line crossover with zero filter

#2. Zero-line cross as a regime shift

#3. TRIX as a regime filter

#Advanced patterns in AlgoLift

#Common mistakes