TRIX is a great indicator to use on zero cross setups.... know what's even better? TRIX CROSS setups!!!
Faster in-and-out on trends, safer entry and exit signals in chop or consolidation. Base setup is 6 & 8 TRIX for longer time frames such as 4hr or 8hr; ideal or FX, Crypto, or volatile instruments. I haven't experimented with using this on lower time charts and adjusting the trix settings; if you do, drop a comment.
Hey great indicator. Question, does this indicator repaint ?
ahmedfr
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Sorry for the trivial question. I am just learning how to use pine script and you mention its for great for zero cross setups. Do you mean when both lines cross zero or either one depending on how I want to interpret your indicator. Thanks.
fauxlife
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@ahmedfr, TRIX is normally 1 line. You can use it to catch divergence patterns (reversal trading) or enter/exit trades when the line crosses over the zero line (trend/momentum trading). With Double Trix you have the option to trade when the lines cross, like EMA pair trading, and it will get into and out of a swing much tighter and more accurately than zero cross with a single line. If a person prefers to use it for single line, they can ignore one of the two or hide the plot so it's a single line indicator. I like to make sure my tools can serve more than 1 purpose so that's potentially 1 or 2 less indicators I need and less confusing when trading.
gianfranco60
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Why do you use by yur work ema and not hull or others m.a?
fauxlife
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@gianfranco60, I tested different methods of calculation for TRIX. Traditionally it's done with EMA and performs as expected. HMA, WMA, and TEMA calculation provided too much noise or poor entry/exit signals. The code is there, feel free to modify and experiment as you see fit.
Otherwise, I have and do trade with HMA; but lately the McGinley Dynamic is proving to be superior for keeping you in trends longer where HMA would have you enter and exit at every small reversal in price.
Here's a quick example of HMA, EMA, and WMA calculation of TRIX: HMA has too much noise, very poor entry & exit signals if I double or triple the length
WMA is still too tight and doesn't position correctly or too sensitive to chop/consolidation
EMA rides the trend tight enough that you're profitable and relaxed enough to keep you in a trend until there is a large enough shift