The Trix indicator for MetaTrader4 that can help spot potential price reversals and confirm trends. Visually, it is a fairly simple looking indicator that can smoothen price fluctuations and reveal the direction of the leading momentum (or its absence) in a currency pair.
The Trix indicator can be used on any time frame, and can be seen to rise as price moves higher, and will also dip as price declines.
The Trix indicator take a while for it to react to changes in price action, due to it being smoothed. This has its advantage, since not every pullback would translate into an exit or trend reversal. The Trix indicator uses “0.0” as its baseline.
When the Trix indicator is below the “0.0” level and moves lower, the trend is said to be bearish. However, if the Trix indicator is above the “0.0” level and surges higher, the trend is said to be bullish.
The trix indicator can be used to measure divergences. A bullish divergence is in place when price makes a lower low, but the Trix indicator does the opposite. This implies weak selling momentum, which could lead to a reversal.
A bearish divergence is the order when price forms a higher high, but the Trix indicator does the opposite. This is an indication of weakening buying momentum, which could obviously lead to a possible reversal.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (EMA, Signal), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: momentum oscillator