Trix_v3
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This tool is a technical analysis indicator designed to help traders identify momentum shifts and potential entry points in the market. Rather than looking at raw price movements alone, it processes data through multiple layers of smoothing to filter out "market noise" and highlight underlying trends.
How the Logic Works
The script follows a multi-step mathematical process to arrive at its final visual signals:
1. Data Smoothing (Triple Moving Average) The logic begins by taking the closing price of an asset and applying three consecutive layers of moving averages.
- First, it calculates a Smooth Moving Average (SMMA).
- It then applies a second SMMA to that result.
- Finally, it applies an Exponential Moving Average (EMA) to the second result. By layering these different types of averages, the tool creates a highly refined data set that is less susceptible to sudden, insignificant price spikes.
2. Momentum Calculation Once the smoothed data is established, the script calculates the "rate of change." It looks at the difference between the current value and the previous value of the smoothed data. This helps determine how fast the price momentum is accelerating or decelerating.
3. Signal Generation (The "Signal" Line) The script then takes that momentum calculation and smooths it once more using a shorter period. This creates two primary visual components:
- The TRIX Line: Represents the core momentum of the market.
- The Signal Line: Acts as a secondary reference point to compare against the main momentum.
Trading Alerts and Visuals
The primary purpose of this script is to identify "cross-overs." When the TRIX momentum line crosses over the Signal line, it indicates a potential shift in market direction:
- Buy Signals: When the momentum moves upward relative to the signal line, the script can trigger an alert.
- Sell Signals: When the momentum moves downward relative to the signal line, the script can trigger a corresponding alert.
To ensure clarity for the user, the tool includes a "state tracker." This prevents the script from sending multiple repetitive alerts for the same move; it is programmed to recognize when a trend has already flipped and will only notify you once per direction change.
Summary for the User
This script is designed to simplify complex market behavior into clear momentum trends. By filtering the price through multiple layers of calculation, it attempts to provide a cleaner picture of whether the market is gaining strength or losing steam, providing automated alerts when those momentum shifts occur.
//+------------------------------------------------------------------+
//| TRIX.mq4 |
//| by Raff |
//| |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2006, raff1410@o2.pl"
//---- indicator settings
#property indicator_separate_window
#property indicator_buffers 6
//----
#property indicator_color1 Red
#property indicator_color2 Green
#property indicator_color3 Black
#property indicator_color4 Aqua
#property indicator_color5 DarkGray
#property indicator_color6 DarkGray
#property indicator_width1 1
#property indicator_width2 1
#property indicator_width3 0
#property indicator_width4 0
#property indicator_width5 1
#property indicator_width6 1
#property indicator_style1 STYLE_SOLID
#property indicator_style2 STYLE_DOT
#property indicator_style3 STYLE_SOLID
#property indicator_style4 STYLE_SOLID
#property indicator_style5 STYLE_SOLID
#property indicator_style6 STYLE_SOLID
#property indicator_level1 0
//---- indicator parameters
extern int TRIX_Period =13;
extern int Signal_Period =8;
extern bool Signals =true;
extern int CountBars =1500;
//---- indicator buffers
double ind_buffer1[];
double ind_buffer2[];
double ind_buffer3[];
double ind_buffer4[];
double ind_buffer5[];
double ind_buffer6[];
double ind_buffer7[];
//---- variables
static bool TurnedUp=false;
static bool TurnedDown=false;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- drawing settings
IndicatorBuffers(7);
SetIndexStyle(0,DRAW_LINE);
SetIndexStyle(1,DRAW_LINE);
SetIndexStyle(2,DRAW_ARROW);
SetIndexArrow(2,233);
SetIndexStyle(3,DRAW_ARROW);
SetIndexArrow(3,234);
SetIndexStyle(4,DRAW_LINE);
SetIndexStyle(5,DRAW_HISTOGRAM);
//---- indicator buffers mapping
SetIndexBuffer(0,ind_buffer1);
SetIndexBuffer(1,ind_buffer2);
SetIndexBuffer(2,ind_buffer3);
SetIndexBuffer(3,ind_buffer4);
SetIndexBuffer(4,ind_buffer5);
SetIndexBuffer(5,ind_buffer6);
SetIndexBuffer(6,ind_buffer7);
//---- name for DataWindow and indicator subwindow label
IndicatorShortName("TRIX index | Period: "+TRIX_Period+", Signal Period: "+Signal_Period+" | ");
SetIndexLabel(0,"TRIX");
SetIndexLabel(1,"Signal");
//---- initialization done
return(0);
}
//+------------------------------------------------------------------+
//| TRIX |
//+------------------------------------------------------------------+
int start()
{
if (TRIX_Period==Signal_Period) return(0);
int i, limit=CountBars;
if (limit>Bars) limit=Bars-1;
//---- trix
for(i=0; i<limit; i++) ind_buffer1[i]=iMA(NULL,0,TRIX_Period,0,MODE_SMMA,PRICE_CLOSE,i);
for(i=0; i<limit; i++) ind_buffer2[i]=iMAOnArray(ind_buffer1,0,TRIX_Period,0,MODE_SMMA,i);
for(i=0; i<limit; i++) ind_buffer7[i]=iMAOnArray(ind_buffer2,0,TRIX_Period,0,MODE_EMA,i);
//
for(i=0; i<limit-1; i++) ind_buffer1[i]=(ind_buffer7[i]-ind_buffer7[i+1])/ind_buffer7[i+1];
for(i=0; i<limit-1; i++) ind_buffer2[i]=iMAOnArray(ind_buffer1,0,Signal_Period,0,MODE_EMA,i);
for(i=0; i<limit-1; i++) {ind_buffer5[i]=ind_buffer1[i]-ind_buffer2[i]; ind_buffer6[i]=ind_buffer5[i];}
//---- signals
i=limit-1;
while(i>=0)
{
if (Signals==true)
{
if (ind_buffer2[i]<ind_buffer1[i] && ind_buffer2[i+1]>=ind_buffer1[i+1]) ind_buffer3[i]=ind_buffer2[i]-0.0001;
if (ind_buffer2[i]>ind_buffer1[i] && ind_buffer2[i+1]<=ind_buffer1[i+1]) ind_buffer4[i]=ind_buffer2[i]+0.0001;
if (ind_buffer3[0]==ind_buffer2[0]-0.0001 && TurnedUp==false)
{
Alert("Trix Buy: ",Symbol()," - ",Period()," at ", Close[0]," - ", TimeToStr(CurTime(),TIME_SECONDS));
TurnedDown=false;
TurnedUp=true;
}
if (ind_buffer4[0]==ind_buffer2[0]+0.0001 && TurnedDown==false)
{
Alert("Trix SELL: ",Symbol()," - ",Period()," at ", Close[0]," - ", TimeToStr(CurTime(),TIME_SECONDS));
TurnedUp=false;
TurnedDown=true;
}
}
i--;
}
//---- done
return(0);
}
//+------------------------------------------------------------------+
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