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TRIX with Linear signal is a trading algorithm based on the interaction of TRIX indicator calculations using an additional indicator to improve the accuracy of signals. The indicator is used in trading to determine the current trend, namely its direction and strength. It appears in the lower window of the price chart as two intersecting lines: the main and the signal, which, when determining market conditions, are painted in a certain color and move in a certain direction. The current values of the indicator lines serve to determine the trend and trade in this period.
The TRIX with Linear Regression Signal line indicator can be used on any timeframe, with any currency pairs.
Input parameters
There are several sections in the settings of the TRIX with Linear Regression Signal line indicator, each of which affects the overall functioning of the indicator. Thus, the Input Parameters section is responsible for its technical work, the Colors section for its general visualization, and the Levels section for adding to the window indicator of signal levels.
-Trix period - TRIX indicator calculation period. The default value is 8.
-Price - type of the price at which the indicator values are calculated. The default value is Close price.
-Signal period - period of the signal line of the indicator. The default value is 14.
Indicator signals
The algorithm for applying the TRIX with Linear Regression Signal line indicator is very simple. To open a certain trade using the indicator, it should be taken into account the direction of the current trend, namely the color, direction and intersection of its lines. If the indicator detects an upward trend, long positions are opened, with a downward trend -short positions. When the direction of the current trend changes, the trades are closed.
Signal for Buy trades:
- The indicator lines move up, have a color with a growth value and intersect so that the main line is above the signal line.
Upon receipt of such conditions, a buy trade can be opened on the signal candle due to the presence of an upward trend in the current market. It should be closed when the current trend changes, namely, at the next intersection of the indicator lines. At this moment, it should be considered opening new trades.
Signal for Sell trades:
- The indicator lines intersect so that the signal line is higher than the main one. In this case, both lines are directed downwards and have a color with a falling value.
A sell trade can be opened when a combination of such conditions is received on a signal candle. At this moment, the presence of a downward trend is determined. The current trade should be closed and a new one should be opened when the opposite conditions are received, at the moment the current trend changes.
Conclusion
The TRIX with Linear Regression Signal line indicator is a very effective trading algorithm based on the interaction of precise forex indicators. Despite the ease of use, it is recommended to use a demo account before trading on a real deposit.
