24 basic indicators (12) -- Trix

Trix

The indicator is also called the triple index smoothing moving average. Its full name is "Triple exponentially smoothed average". It is a long-term technical analysis tool for studying stock price trends.

Section 1 principles and calculation methods of Trix indicators

I. Principles of Trix indicators

Trix is based on the moving average theory. It performs three smooth operations on an average and then predicts the long-term trend of the stock price based on the change of the moving average.
Similar to trend indicators such as trma, Trix ignores the interference of short-term price fluctuations and removes the defect of frequent false signals from moving averages, to minimize the interference of the main "line of deception", avoid wasting large transaction costs due to too frequent transactions, and retain the effect of moving average, the stock price's long-term movement trend is highlighted, which gives investors an intuitive and accurate understanding of the stock price movement trend for a long period of time in the future, thus reducing the risk of investors getting stuck in depth and losing the dark horse. Therefore, the Trix Index provides a useful reference for long-term investors of the balanced model.

Ii. Trix metric Calculation Method

Because the selected computing cycle is different, trix indicators of the Rise/fall ratio include Trix indicators of N days, Trix indicators of N weeks, Trix indicators of N months, Trix indicators of N years, And Trix indicators of n minutes. The daily Trix and weekly Trix indicators are often used for stock market research. Although their values are different during calculation, the basic calculation method is the same.
The Trix calculation method is complex. The calculation process of Trix is as follows:
1. Calculate the exponential average ax of the closing price for N days
Ax = (I) Closing Price X 2 minus (n + 1) + (I-1) day ax (N-1) x (n + 1)
2. Calculate the exponential average Bx of ax for N days
BX = (I) ax x 2 hour (n + 1) + (I-1) x Bx (N-1) x (n + 1)
3. Calculate the exponential average Trix of the Bx For N days
Trix = (I) BX x 2 hour (n + 1) + (I-1) day Taix (N-1) x (n + 1)
4. Calculate the daily moving average trma of Trix
Trma = <(I-M) day Trix accumulate> m
Like some technical indicators, although Trix index calculation methods and formulas are cumbersome, in practice, due to the popularity of stock market analysis software, investors do not need to calculate Trix indicators, it is mainly to understand Trix's calculation methods and processes, so as to gain a deeper understanding of the essence of Trix indicators and lay the foundation for the flexible use of indicators.

Section 2 General Criteria for Determining Trix indicators

Trix is a medium-and long-term indicator. Its biggest advantage is that it can filter out short-term fluctuations to avoid errors and losses caused by frequent operations. Therefore, the Trix index is most suitable for the long-term analysis and determination of the market. In stock market software, the Trix indicator has two lines: Trix and trma. The general criteria for Trix indicators are mainly focused on the cross between Trix and trma lines. The basic analysis content is as follows:
1. When the Trix line breaks the trma line from the bottom up to form a "golden cross", it indicates that the stock price starts to rise in a strong position and investors should buy the shares in time.
2. When the Trix line goes up and beyond the trma line, the Trix line and the trma line go up at the same time, indicating that the stock price remains strong, and investors should firmly hold their shares to stay up.
3. When the Trix line is flattened or turned down at a high position, it may indicate that the strong feature of the stock price is coming to an end. Investors should pay close attention to the stock price trend. Once the share price on the K-line chart shows signs of a drop, investors should sell shares in a timely manner.
4. When the Trix line breaks down the trma line at a high position and forms a "dead cross", it indicates that the strong rise of the stock price has ended. Investors should resolutely sell the remaining shares and wait and see in time.
5. When the Trix line breaks down the trma line, the Trix line and the trma line move down at the same time, indicating that the weak characteristics of the stock price are still the same, and investors should firmly hold the currency to wait and see.
6. When the Trix line moves down below trma for a long period of time and the share price has fallen sharply, if the Trix line shows signs of flattening or turning up at the bottom, once the stock price increases with a large volume of transactions, investors can build a small amount of data in a timely manner.
7. When the Trix line breaks the trma line again, it indicates that the stock price will rise again. Investors can buy it in time and their shares will be up.
8. Trix indicators are not applicable to the analysis and determination of the overall stock price.

Section 3 special analysis methods for Trix indicators

The special Trix indicators are mainly divided into three points: one is how many cross cases of the Trix and trma lines, and the other is the principle of Moving Average first, third, modify and use different Trix parameters.

I. intersection of the Trix and trma lines

In general, during the overall increase and fall of a stock, the Trix line and trma line in the Trix indicator have two or more "golden crossover" and "Death crossover.
1. When the Trix line breaks the trma line up after a long period of decline, it indicates that the stock market is about to become stronger, and the share price decline has ended and will stop falling up, you can start to buy stocks and create a warehouse in the middle and long term. This is a form of Trix metric "Golden Cross.
2. When the Trix line breaks through the trma line again after a period of price consolidation, the Trix line shows that the stock market is in a strong position, the stock price will rise again, and you can add code to buy or hold shares to be raised. This is a form of Trix's "golden crossover.
3. When the stock price rises after a long period of time in the early stage and the stock price increases sharply, once the Trix line breaks down trma, it indicates that the stock market is about to change from strong to weak, the stock price will drop sharply. At this time, you should sell a majority of the shares instead of buying them. This is a form of "Death crossover" of the trma indicator.
4. When the stock price drops for a period of time, and the stock price is not motivated to rise upwards, various moving averages put a strong pressure on the stock price, once the Trix line breaks down the trma line again, it indicates that the stock market will enter an extremely weak city again, and the stock price will fall again, so you can sell or watch again. This is another form of trma's "Death crossover.

Ii. Trix indicator curve form

When the Trix index is in a high position or in a low position, the various forms that appear are also a way to judge the market, which determines the sale action.
1. When the Trix curve forms a high position such as m head or triple top, it means that the rising momentum of the stock price has been exhausted and the stock price may reverse for a long time, investors should sell shares in a timely manner. If the stock price trend curve has also appeared in the same form, it can be more confirmed. The magnitude and process of the stock price decline can be determined by referring to the m head or the three-heavy top and other top reversal forms.
2. When the Trix curve forms a low position, W low or triple low position Reversal form, it means that the decline momentum of the stock price has weakened, and the stock price may build a medium-and long-term bottom. Investors can build warehouses in batches at low levels. If the stock price trend curve has also appeared in the same form, it can be confirmed that the rise of the stock price and the process can be determined by referring to the bottom W or triple bottom and other bottom reversal forms.
3. Trix curve top reversal form is more accurate than the bottom form for market judgment

Iii. Trix indicator Deviation

The Trix indicator deviation refers to the trend of the Trix indicator curve, which is exactly the opposite of the trend on the price chart. Like other technical analysis indicators, Trix indicators may deviate from the top or bottom.
1. Top Deviation
When the stock trend on the K-line chart is one-to-one peak, the stock price continues to rise, while the Trix curve on the Trix indicator chart is one-to-one peak, which is called a top deviation. The top deviation is generally a signal that the stock price will reverse at a high position, indicating that the stock price is about to fall in the short term, which is a strong selling signal.
2. Bottom Deviation
When the stock trend on the K-line chart is lower than the peak, the stock price is falling, and the Trix curve on the Trix indicator chart is at the bottom of the Base, which is called the bottom deviation. The bottom deviation is generally a signal that the stock price will reverse in a low position, indicating that the stock price is about to rise in the short term, which is a strong buying signal.
The indicator deviation is generally relatively reliable in a strong market. That is, when the stock price is at a high position, the top reversal of the market can be confirmed only when the top deviation occurs. When the stock price is at a low position, generally, the bottom reversal of the market can be confirmed only after repeated divergence.

Iv. Parameter Modification

The Trix index calculation method shows that the Trix index is also a time parameter. The time cycle of the parameter can be day, month, week, year, or minute, based on the length of Stock Market time and the choice of investors, these time periods can theoretically take any time length. In most mainstream stock market analysis software (such as Qian Long and analysts, most of the changes in various time periods are limited to 1-99, for example, 1 day-99 Day, 1 week-99 Week. Although some stock market analysis software has expanded the parameter settings to 1-, this part of software is relatively small, the parameter settings of the Trix indicator in this section are limited to 1-99.
Section 4 practical skills of Trix indicators
Compared with other indicators, Trix indicators are more suitable for the analysis and determination of medium and long-term investment in stocks. Its structure is also relatively simple. In the stock market analysis software, it is mainly composed of Trix and trma curves, and its analysis and determination is mainly concentrated in the intersection of Trix and trma curves ("Golden Cross" and "Dead cross ") and the operation direction of these two curves. The following uses the Trix indicator composed of the Trix curve on the 24th and the trma curve on the 7th to reveal the sale and wait-and-see functions of the Trix indicator.

I. Sales Functions

1. When the stock price increases, after a period of consolidation, the Trix curve on the 24th begins to go up and above the 72-day trma curve, and a large volume of transactions is released, this indicates that the strong stock market sentiment has been formed and the stock price will enter the rapid rise phase, which is a medium-and long-term buy signal issued by Trix. Especially those stocks whose share prices are also above the medium-and long-term moving average, this buying signal is even more obvious. At this time, investors should buy in time. (10-1.
2. When the stock price is consolidated at a high position, once the Trix curve on the 24 th begins to break down the trma curve on the 72 th, it indicates that the stock market's high position is about to end, and the stock market may reverse down, this is a medium-and long-term sales signal from the Trix indicator. Especially those stocks whose share prices have also fallen below the medium-and long-term average, this selling signal is more accurate. At this time, investors should sell on an equal footing in time. (10-2.

Ii. Currency Ownership Function

1. When the stock price is in the mid-low position consolidation process, once the Trix curve on the 24 th breaks through the trma curve on the 72 th, the two curves run upwards simultaneously, it indicates that the stock price is in a medium-and long-term strong upward trend, which is a signal that the shares of the Trix index are about to rise. This signal is more accurate, especially those stocks whose share prices run in the medium and long term on average. At this time, investors should firmly hold their shares to be up or on low prices. (10-3.

2. When the stock price is in the middle and lower direction, as long as the Trix curve runs under the 72-day trma curve on the 24th, and the two curves run almost simultaneously downward, it indicates that in the medium-and long-term weak behavior of the stock market, the stock price will not go down, but this is a long-term currency holding signal issued by Trix. Especially those stocks whose share prices run below the medium-and short-term average, this currency holding signal is more obvious. At this time, investors should focus on currency holding.