Trix Trend Cycle Indicator

Trix Trend Cycle Indicator

Trix Trend Cycle Indicator For MT4, moving average-based oscillator providing overbought and oversold forex trading signals

The Trix trend cycle indicator for MT4 is an oscillator that provides forex trading signals based on the overbought and oversold market conditions. TRIX – Trix exponential moving average filters out smaller price fluctuations to provide a smoother trend. Hence, it enables forex traders to buy and sell and navigate the markets easily.

The indicator is easy to understand and works well for new and advanced forex traders. It works on all chart time frames; however traders should consider working on higher chart time frames. Furthermore, this indicator does not repaint after candle close. Additionally, traders can use this indicator for auto trading strategies or use in confluence of other technical indicators for analysis.

Trix Trend Cycle Indicator For MT4 Trading Signals

The indicator plots an oscillator from 0 to 105. 0 indicates an oversold condition and 105 is an overbought condition. The oscillator line is green and red indicating the trend cycle. Bullish trend cycle is in green while red represents the bearish one. The trading strategy is to enter the markets at an oversold or overbought condition based on the line color.

Traders should consider buying the currency pair, if indicator line turns green. A stop loss below the previous swing low should protect the position. Similarly, if the indicator line turns red indicating an overbought condition, it is time to sell.

As an oscillator, the best strategy is to hold the position until the opposite trading signal. Moreover, traders should consider looking at a higher time frame chart to confirm and trade in line the trend direction.

Conclusion
In summary, the TRIX is a moving average based oscillator that provides overbought and oversold forex trading signals. However, traders should use price action to confirm the price reversals.