TRIX (Triple Exponential Average) was developed by Jack Hutson, an editor at Technical Analysis of Stocks & Commodities magazine, and published in the early 1980s. Its construction is elegant: start with a single EMA of the close price, apply a second EMA to that result, apply a third EMA to that result, then calculate the percentage rate of change of this triple-smoothed line from one period to the next. The result: an oscillator that represents the momentum of a heavily-smoothed trend line. The triple smoothing suppresses minor price fluctuations that cause false signals in MACD (which uses only double EMA smoothing) and single-EMA momentum indicators. TRIX's zero-line crossovers represent significant and reliable momentum shifts in the triple-smoothed trend. For automated crypto trading, TRIX's noise filtering makes it particularly valuable on volatile pairs where simpler indicators generate excessive false signals. DennTech implements TRIX with zero-line crossover, signal line, and TRIX-ADX combined modes.
Related strategies: MACD, EMA, CMO.
TRIX Formula
Step 1: EMA1 = EMA(Close, N periods) Step 2: EMA2 = EMA(EMA1, N periods) Step 3: EMA3 = EMA(EMA2, N periods) Step 4: TRIX = ((EMA3 - EMA3_previous) / EMA3_previous) × 100 Standard period: N = 14 or 18 Signal Line: 9-period EMA of TRIX TRIX Histogram: TRIX - Signal Line Signals: Zero-line crossover: TRIX crosses above 0 → bullish; below 0 → bearish Signal line crossover: TRIX crosses above Signal Line → bullish momentum Histogram turn positive → potential early entry Example: N=14, EMA3 today = $63,100, EMA3 yesterday = $62,950 TRIX = ((63,100 - 62,950) / 62,950) × 100 = (150 / 62,950) × 100 = +0.238 Positive and rising TRIX: bullish momentum in triple-smoothed trend
TRIX vs MACD: Noise Filtering Comparison
| Feature | TRIX | MACD |
|---|---|---|
| Smoothing layers | Triple EMA | Double EMA (difference) |
| Noise filtering | High — fewer false signals | Moderate |
| Signal lag | Higher than MACD | Lower than TRIX |
| Signal frequency | Fewer signals | More signals |
| Best for | High-volatility pairs (altcoins) | BTC/ETH lower-noise charts |
The TRIX-MACD tradeoff: TRIX filters more noise (better for volatile pairs) at the cost of more lag. MACD is more responsive at the cost of more false signals on volatile pairs. Test both on your specific pair and timeframe using DennTech's backtest. See our MACD guide.
Three TRIX Strategy Modes
Mode 1: Zero-Line Crossover
Long entry: TRIX crosses above 0. Exit: TRIX crosses below 0. Standard trend-following mode. Suitable for Daily/Weekly charts. ATR stop essential. See our ATR Stops guide.
Mode 2: Signal Line Crossover
Long entry: TRIX crosses above its 9-period Signal Line. Earlier entry signal than zero-line crossover with more false positives. ADX filter recommended to reduce noise. See our ADX guide.
Mode 3: TRIX-ADX Combined
ADX above 25 (trend confirmed) + TRIX zero-line crossover (direction confirmed) = high-conviction entry. Both conditions required simultaneously. Minimum false signals, fewer but higher-quality entries.
DennTech TRIX Configuration
- Navigate to Strategy → TRIX
- Mode: Zero-Line, Signal Line, or TRIX-ADX
- Period: 14 (standard) or 18 (slower, fewer signals)
- Signal line period: 9
- ADX period and minimum for Mode 3: 14-period ADX, minimum 25
- ATR stop-loss: 2.0× ATR(14)
- Timeframe: Daily or 4H
Compare editions at pricing page. All strategies at strategies page. Full documentation at DennTech docs.
Frequently Asked Questions
- Why does TRIX generate fewer signals than MACD and is this a disadvantage?
- TRIX generates fewer signals than MACD specifically because of its triple smoothing — minor oscillations that cause MACD line crossovers are smoothed out before they affect TRIX's rate of change. Whether this is a disadvantage depends entirely on your strategy's objective. Fewer signals means: fewer trades (lower total fee cost), longer average holding periods per trade (more time needed between signals), and higher signal quality (each crossover represents a more significant momentum shift). For traders who want high-frequency automated strategies that capitalize on short-term oscillations, MACD or CMO are better choices. For traders who want fewer but higher-conviction trend-following signals — particularly on volatile altcoins where MACD generates too many false crossovers — TRIX's reduced signal frequency is a genuine advantage. On a highly volatile altcoin pair, TRIX might generate 15 signals per year on a Daily chart while MACD generates 40; the TRIX signals are on average more reliable. Test this explicitly with DennTech's backtest. See our backtesting guide. Compare editions at the pricing page.
- What is the best TRIX period for Bitcoin versus smaller altcoin strategies?
- For Bitcoin on a Daily chart, TRIX(14) or TRIX(18) both work well. BTC's lower volatility relative to altcoins means TRIX's noise filtering is less essential but still valuable — TRIX(14) with zero-line crossover provides clean trend direction signals on BTC Daily charts with approximately 12–20 signals per year. For smaller altcoins on Daily or 4H charts, TRIX(18) or even TRIX(21) provides more aggressive noise filtering appropriate for the higher volatility. The broader rule: higher-volatility assets benefit from longer TRIX periods (more smoothing). BTC is fine with 14; mid-cap altcoins with 2–5× BTC volatility benefit from 18–21 period TRIX. For any configuration, backtest both periods and compare Profit Factor and maximum drawdown before selecting. DennTech's backtest makes this comparison straightforward. Explore the live demo. Start at the pricing page.
- Can TRIX identify divergences like MACD and is TRIX divergence more reliable?
- Yes — TRIX can show divergence between its indicator values and price in the same way MACD histogram divergence works. TRIX divergence: price makes a new high while TRIX makes a lower high → bearish divergence; price makes a lower low while TRIX makes a higher low → bullish divergence. TRIX divergence signals are theoretically more reliable than MACD histogram divergence because the triple smoothing means TRIX's peaks and troughs represent more significant momentum events than MACD's (which can show divergence from minor oscillations). However, TRIX's additional lag means the divergence signal is confirmed later — after more price movement has already occurred. In practice, TRIX divergence serves best as a confirmation signal rather than a primary entry trigger: if your EMA trend filter or ADX is also showing weakness simultaneously with a TRIX bearish divergence, the combination provides stronger reversal evidence. See our MACD guide for MACD divergence comparison. Start at the pricing page.
Momentum indicators: TRIX (this guide), MACD, CMO. All at the strategies page.