Theory:
Back in the early 1980s, Jack Hutson introduced the Triple Exponential Average (TRiX), a momentum indicator that has become a favorite among technical traders. This tool measures the percentage change in a triple exponentially smoothed moving average, which makes it super responsive to price shifts. While that responsiveness can complicate its use for traditional divergence detection, using slope divergence opens up new avenues. This version is also designed for multi-timeframe analysis, making it versatile for various trading strategies.
Usage:
When it comes to spotting divergences in trading, this indicator is a game changer. The channel will instantly alter the color of the middle line whenever the slopes of the on-chart channel and the on-indicator channel diverge. This visual cue helps you stay ahead of potential market movements.
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