The JMA TRIX log indicator is a trading algorithm, the calculations of which are based on the interaction of several forex indicators, namely the modification version of the JMA moving average and the TRIX indicator. The indicator's calculations are aimed at determining the current trend, namely its strength and direction, and trading during this period. The indicator is presented in the lower window of the price chart as a solid line that changes its color and direction relative to the signal level under certain market conditions. Taking into account the values of the indicator line, a trend is determined, which is taken into account when opening trades.
The JMA TRIX log indicator can be used to trade any currency pair on any timeframe.
There are several sections in the JMA TRIX log indicator settings that are responsible for its general functioning. The Input parameters section is responsible for its technical work, the Colors section for general visualization, while the Levels section is used to add signal levels to the indicator window.
-Trix period - TRIX indicator calculation period. The default value is 14.
-Price - type of the price to which the indicator calculations are applied. By default, it has the Close price value.
To open a certain trade using the JMA TRIX log indicator, one should take into account the direction and strength of the current market trend. For this, in turn, the direction and color of the indicator line, as well as its location relative to the signal level 0, are taken into account. If the indicator determines an upward trend, buy trades are opened, if the trend is downward, sell trades. When the trend changes, in both cases, trades are closed.
Signal for Buy trades:
- The indicator line is directed upwards, above level 0 and has a color with a growth value.
Upon receipt of such an indicator condition that characterizes an uptrend, a buy trade can be opened. At the moment of its change, namely, upon receipt of reverse conditions from the indicator, the current trade should be closed and a new one should be considered.
Signal for Sell trades
- The indicator line has a color with a falling value and falls below the signal level
Upon receipt of such a condition, a sell trade can be opened. At this moment, a downtrend is determined in the market. The trade should be closed upon receiving the opposite conditions from the indicator. At this moment, a change in the current trend is possible, which will allow considering the opening of new trades.
The JMA TRIX log indicator is a very simple yet powerful trading algorithm with an efficient calculation method. To improve the quality of signals, it is recommended to use it with additional indicators, expert advisors and tools.