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  1. #1
    Administrator Martin Kay's Avatar

    Hot TRIX Indicator for Binary Options – Useful Tool for Beginners !!!

    Hi guys,

    Michael presented article on a promising new Tool. Check his TRIX Indicator Review and find how to test it for binary trading.

    Originally posted by Michael Hodges.

    The TRIX is a momentum oscillator used by commodity, forex and options traders to generate trend following signals. It is also a useful tool for binary options traders when used as intended. One of advantage of the TRIX is its calculation which incorporates multiple moving averages with a rate of change. The result is an indicator with trend and momentum determining capabilities. The TRIX indicator provides trend following entry signals, predicts tops and confirms support. Although it can be used as a strategy the TRIX is best employed as a tool in a larger strategy. Failure to recognize support, resistance and other potential turning points can lead to false signals, whipsaws and losses.

    The TRIX is a useful tool and one I think well suited to beginner traders. The tools utilizes momentum and trend,displays in an oscillator and provides three different types of signals. It is easy to read and easy to follow, useful in multiple time frames and adaptable to individual markets. This tool is like having two tools in one. A beginner starting out with this tool gains an advantage because he or she will only need to focus on one indicator. More experienced traders can gain an advantage as well by clearing out the clutter of two indicators and replacing them with one. I like the TRIX and can see it fitting in well with trend line, Fibonacci, Bollinger Band and support/resistance trading strategies.

  2. #2
    Junior Member
    The TRIX indicator is using three smoothed EMA as I see from this review, but how is it related to MACD?

  3. #3
    Senior Member LeeChang's Avatar
    Hi michaelch,

    The similarities are in the signals this indicator provides. The same like MACD generate three basic types of signals – line crossover, overbought/oversold conditions and divergences.

  4. #4
    Legendry Member willyw's Avatar
    Quote Originally Posted by LeeChang View Post
    Hi michaelch,

    The similarities are in the signals this indicator provides. The same like MACD generate three basic types of signals – line crossover, overbought/oversold conditions and divergences.
    The lines are smoothed out with little whipsaws but its a lagging indicator

  5. #5
    Legendry Member Michael Hodges's Avatar
    its is a lagging indicator but is there really a leading indicator? all indicators are based on current data so at best we can have a coincident indicator. Even the index of leading indicators is a reading of last months data predicting how this month will be...its more of a rear look at a forward viewpoint. Willy, what do you use to get a forward view of your markets?

  6. #6
    Junior Member howard1's Avatar
    Quote Originally Posted by Michael Hodges View Post
    its is a lagging indicator but is there really a leading indicator? all indicators are based on current data so at best we can have a coincident indicator. Even the index of leading indicators is a reading of last months data predicting how this month will be...its more of a rear look at a forward viewpoint. Willy, what do you use to get a forward view of your markets?
    Generally you are right Michael, but in technical analysis there is a differentiation between lagging (MA for example) and leading indicators like Stochastic and RSI. They are based on previous data too, but they are actually trying to predict the future price movements, while the lagging indicators are just a derivative or smoothed representation of the past market movements.

  7. #7
    Legendry Member willyw's Avatar
    Quote Originally Posted by Michael Hodges View Post
    its is a lagging indicator but is there really a leading indicator? all indicators are based on current data so at best we can have a coincident indicator. Even the index of leading indicators is a reading of last months data predicting how this month will be...its more of a rear look at a forward viewpoint. Willy, what do you use to get a forward view of your markets?
    Haha Micheal, you are the first person to ask me this question. Its a very good question and its on every traders mind but so no 100% answer to it!!!! What I am sharing is from my experience. I use many indicators including EAs and and constantly keep researching and exploring new strategies but there is no 100% accuracy on any claimed leading indicators. Micheal, as you mention many leading indicators are base on historical data which is truth. I use candlestick to analyze the market condition (not analyse market trend or direction) which force is in the current market and the fibonacci to project prices. Coupled with these and together with my experience and inistinct of the market to analyze and predict the current market condition. Then apply other indicators for confirmation.
    My experience and instinct of the market are gained by accumulated trading in the market which is trading manually to the feel of the market.
    I have EAs but I dont use them for my trading instead I trade manually. When I am trading I never leave my screen but watch and observe how prices moves and fluctuates and take notes which in my personal opinion is a good habit to learn and have a market instead of relying on robots.
    Before when the market becomes hi-tech i use to draw charts manually to get a better feel of the market. When I was a junior trader I have hand drawn charts of the 4 majors with at least 10 years history on daily, monthly and yearly which I update daily after market close without fail. From hand drawn charts I get he basic feel of price movement. I dont trade all currencies only 1 which is USD/JPY and perhaps a secondary pair but rarely.

  8. #8
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by howard1 View Post
    Generally you are right Michael, but in technical analysis there is a differentiation between lagging (MA for example) and leading indicators like Stochastic and RSI. They are based on previous data too, but they are actually trying to predict the future price movements, while the lagging indicators are just a derivative or smoothed representation of the past market movements.
    STochastic and RSI are not leading indicators. They are based on past data and show the strength and direction of the market based on past performance. They do not indicate future performance, they merely provide a base for your analysis...if there were a leading indicator that was really a leading indicator then we would all be using it and all be super duper rich.

  9. #9
    Active Member
    Quote Originally Posted by Michael Hodges View Post
    ...if there were a leading indicator that was really a leading indicator then we would all be using it and all be super duper rich.
    100% true!
    Some people will always look for a way to sit back and make money, if there was a way to do it everybody were doing it.
    If you really want to make profits in the long run you will have to make your own homework before you trade. The lazy way will not work for the long term.

  10. #10
    Legendry Member willyw's Avatar
    Quote Originally Posted by binarydaily View Post
    100% true!
    Some people will always look for a way to sit back and make money, if there was a way to do it everybody were doing it.
    If you really want to make profits in the long run you will have to make your own homework before you trade. The lazy way will not work for the long term.
    Thats true, have to work hard to succeed. Laziness only benefits short term and in the long term will lose everything and then regret which is too late.

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