Triple Exponential Smoothing Oscillator - Trix

Single linear exponential smoothing was developed in the early 1950s as a means of prediction along a straight line whose slope was based on previous data. The Triple Exponential Smoothing Oscillator ( Trix ) has now been developed to act on trends of a higher order than linear. Trix uses a one-day momentum of a triple exponential smoothed price series to produce an indicator which is cycle dependent. Changes in the Trix direction are less prone to whipsaws than standard cycle-momentum indicators. The period is chosen to filter out any insignificant cycles shorter than the period. Fourier Analysis or visual observation may be used to find the proper cycle length of a given market. Raising the number of days will remove more small cycles and smooth out the oscillator, but at the loss of sensitivity. The more smoothing that is applied to the data, the more of a lag in the oscillator, but not nearly the lag of a normal moving average.

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