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T3 TRIX Log is a modification of the TRIX indicator included in the standard forex set. In this version, to obtain more accurate signals, the logarithm of the price was used, and instead of the exponential moving, T3 was introduced, which makes the TRIX indicator more susceptible to market movements, and its signals filtered. T3 TRIX Log is presented in the bottom window of the price chart as a solid line that turns a certain color and moves in a certain direction when a market movement is detected. The indicator is used in trading to identify the current trend, its absence and presence, and its direction. This information allows being aware of the movement of the market, and allows accurately determining the direction of the position that opens during a certain trend.
The T3 TRIX Log indicator does not limit the choice of currency pair and timeframe when trading, so any values can be selected.
Input parameters
The T3 TRIX Log settings are more advanced than the standard version, this allows more accurately adapting the indicator to own trading. The Colors section in its settings is responsible for the color scheme of the indicator, and the Levels section is responsible for adding signal levels to the indicator window.
- TRIX period - TRIX indicator period value. The default value is 14.
- T3 hot – period of smoothing T3 indicator values. The default value is 0.7.
- T3 type - type of smoothed T3. Default is Fulks/Matulich way of calculations.
- Price - price to which the indicator's calculations will be applied. By default, it is set to Close price.
Indicator signals
T3 TRIX Log is not only a very effective, but also an easy-to-use trading algorithm that helps to open trades during a certain trend. Accordingly, before opening a certain position, the current trend is first determined, taking into account the color and direction of the indicator line. If the trend is up, then the line moves up and has a color with a growth value, if the trend is down, the line moves down and has a color with a fall value. If the line becomes neutral, then there is no millet trend, and in order to avoid a loss, the opening of trades should be suspended.
Signal for Buy trades:
- The indicator line moves up and has a color with the growth value.
Upon receipt of such conditions, a long position may be opened on the signal candle, due to the presence of an upward trend in the market. The position should be closed upon receipt of the opposite conditions from the indicator, namely, when the direction and color of the line change. This may indicate a change in the current trend, which will allow opening trades in the other direction, or simply about the completion of the current one.
Signal for Sell trades:
- The TRIX line, colored with the falling value, is moving down.
A sell trade can be opened immediately on a signal candle upon receipt of such conditions that characterize a downtrend in the current market. Such a trade should be closed after changing the color and direction of the indicator line. This may indicate the end or change of the current trend, which will allow considering opening new trades or just closing old ones.
Conclusion
The T3 TRIX Log indicator is a modified version of the TRIX indicator, the effectiveness of which has been proven by time, while its calculations, like the signals, are more accurate. The algorithm for using the indicator is very simple, and therefore it will suit even beginners whose skills can be improved by practice on a demo account.
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