Charting and Studies User Guide - CQG.com

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Triple Exponential (Trix)
The Triple Exponential study displays the momentum of the result found by processing data
through three passes of exponential smoothing.
The article "Good Trix - Triple Exponential Smoothing Oscillator" by Jack K. Hutson describing
the Triple Exponential appeared in the July/August 1983 issue of Stocks & Commodities. The
article explains, "When using exponential smoothing you are averaging past values of a time
series in an exponentially decreasing manner. Alpha is usually used to represent the fractional
value that past data is weighted, with most recent data having the most impact or weight, and
each preceding days data having exponentially less impact."
The level of exponential smoothing "Alpha" is calculated by the system for the period (N)
entered for the Triple Exponential, where Alpha = 2/(N+1).
The article goes on to explain, "Taken by itself, triple exponential smoothing could tend to overreact
to random market movements. This is the reasoning behind plotting the derivative (one
day momentum) of the triple exponentially smoothed data."
One method of identifying turning points is the use of Trix step theory and Divergence. The
chart below shows a 14-period Trix with the Divergence-based studies. There are 3 signals on
the S*P in 2008.
Basic Studies