Today, during the rapid development of Internet technologies, more and more people are beginning to think about the possibility of getting money by working online. Remote work, real income, convenience, comfort and freedom are the principles that are inherent in freelancing. All this you can easily get by trading binary options, which have gained great popularity among Internet users. The opportunity to work when it is convenient, learn and improve the level of skill, the first real income in 30 seconds – all this is about trading.
Binary options trading can easily become the main one for you, and this too will depend only on your desire. Often, traders, having understood the prospects of such work, increase the level of their knowledge: they study strategies, indicators, ratings of trusted brokers. We also recommend that you look at the rating and reviews on binary options brokers on the portal This is a scam. All this is on our portal, and to become a real professional, you can use this material at any time. Today we will talk about the very useful Trix indicator.
The Triple Exponential Moving Average, Trix indicator is one of the most popular momentum tools for binary options trading, which appeared in 1980 thanks to the works of mathematician and financier Jack Hutson. The name of the indicator translates as “triple exponential moving average”, which fully reflects the features of its work, consisting in calculating the triple moving average, searching for major and secondary trends.
The popularity of the tool has led to the fact that today it is common in the strategies of traders, a large number of its modifications have been invented. This is, first of all, an excellent trend indicator, but its peculiarity, unlike other similar tools, is the ability to filter a large amount of market noise. Excluding short-term market cycles that interfere with effective trading, it signals minor changes to the exchange. The fact that it works well with market trends is also evidenced by the fact that it is referred to as impulse indicators. You can see how Trix is visually represented on the price chart in MetaTrader 4 in the image below. You can also download the MetaTrader 4 platform and learn more about how the indicator works.
What is the working principle of the Trix indicator?
Trix is a variant of a successful hybrid of a moving average with norms of change, which is widely used as a filter of serious trends from market “price noise”. As you know, finding entry points to the market is only half the battle, much more is needed for productive work. The Trix indicator, which can also be attributed to oscillators, is a great helper during trading, which allows you to get good results. This is a trend tool that accurately signals market trends, and it also shows reversal points. Initially, such an effective mechanism for calculating “triple exponential moving averages” was created to work on Forex, but, due to its great convenience and efficiency, it became popular in trading.
The basic principle of its operation is based on the calculation of a triple exponential moving average. Trix consists of two lines – a moving average (showing the average value of the price for a specific period) and the ROC indicator (showing the rate of change in quotes, the strength of the market trend). The difference between the TRICS and the EMA is that it is less sensitive to price dynamics, so it shows much fewer false signals. One of the advantages of the indicator is its weak dependence on market noise, which allows you to work perfectly with it on minimum timeframes, use its data in scalping strategies. It works well as part of any trading systems, along with other indicators in the options market and Forex.
Trix Calculation Formula
Trix = K% *(EMAm *(EMAm *( EMAm))); Where is:
K% is the percentage of multiplication of the moving average.
EMA is an exponential moving average.
m is the period.
Info taken from website ru-trade.info
Indicator signals:
Trend signals
This is one of the main ways to use the tool:
- If the Trix indicator has risen above the zero level, this is an uptrend, it is worth buying put options,
- If the Trix indicator has fallen below the zero level, this is a downtrend, it is worth buying call options.
Zero-line crossing signals
This is a simple but very profitable way to trend trade:
- If TRIX has crossed the line from top to bottom, this is a downtrend, it is worth buying PUT options,
- If TRIX has crossed the line from bottom to top, this is an uptrend, it is worth buying call options.
Price divergence signals
Divergence and convergence are applicable in both Forex and options. The essence of the discrepancies lies in the fact that the movement of the price chart is not confirmed by the movement of the TRIX line. This is a common classic situation that shows the weakness of the market trend and the possibility of a trend change. These signals are similar in principle to the MACD divergence:
- Trix divergence occurs on an uptrend, it is worth buying call options,
- Trix convergence occurs in a downtrend, it is worth buying PUT options.
Do I need to install the Trix indicator in your platform?
The TRIX indicator is a non-standard trend trading tool, it is not included in the basic list of MetaTrader 4 indicators. You can download it quickly and for free from our website here. Then you should install the downloaded file in MT4, to do this, use the simple instructions here.
After installation, add the indicator to the price chart, for this:
- Click the “Insert” tab in the top menu of the platform
- Select the tab “Custom” – “Trix”.
Indicator settings:
- Trix Period is the main parameter that traders work with in order for trading to be profitable. As a standard, the system has a mark of 14, which helps to avoid a large number of false signals, but you can change it depending on your strategy.
- Signal Period – the period of the signal line, which is a moving average (its value should be lower than that of the triple EMA).
- Signals – a parameter that allows you to get signals about the intersection of the main line with the signal line. To receive such signals, set true, if you do not want to receive them, set false.
- Count Bars – sets the number of candles that are taken into account when calculating the TRIX value.
Application of the indicator for binary options
Trix is one of the most popular impulse tools in binary options trading, and it is also common in Forex. This, at least, is evidenced by such a large number of its modifications, as well as the strategies in which it is included. Most of all, it is used to filter out minor price fluctuations. TRIX performs well when working with the search for trends and divergences in the market, allowing you to get a stable profit. The main thing to remember here is that if a flat begins in the market, the possibility of profit is minimized, it is better to wait out these situations.
Among the advantages of the tool:
- Exact trend following.
- Good market reversal signals.
- Good filtering of market noise.
- Productive trading at any time interval.
The main value of Trix is that it perfectly reflects the strength of the momentum of the current movement, which allows you to implement a simple but highly profitable trading strategy:
- If the Trix line is above zero, then the market is expected to grow, you can buy call options.
- If the Trix line is below zero, then the market is expected to fall, you can buy put options.
It can also be used in trading as a main or auxiliary tool, but most often it is combined with oscillators. If you use additional indicators, the presence of false market signals will be minimized, which will increase productivity. TRIX will work well with both short-term trading and long-term options.
Rules for concluding transactions (screenshots)
Trading with a trend signal
If the TRIX indicator has risen above the zero level, this is an uptrend, it is worth buying PUT options. The image below shows the downward trend of the market (expected after an uptrend) in the MetaTrader 4 trading terminal:
Take advantage of the trend and place a PUT bet with the Binomo broker by going to the binomo.com website and preparing an option, indicating:
- Type of option.
- Expiration date.
- Amount.
- Forecast: down.
- Next, click the “buy” button and wait for the results of the forecast:
If the indicator has fallen below the zero level, this is a downtrend, it is worth buying call options. The image below shows the upward trend of the market (expected after a downtrend) in the MetaTrader 4 trading terminal:
Take advantage of the trend and place a CALL bet with the Binomo broker by going to the binomo.com website and preparing an option, indicating:
- Type of option.
- Expiration date.
- Amount.
- Forecast: up.
- Next, click the “buy” button and wait for the results of the forecast:
Trading at a signal of crossing with the zero line
If TRIX has crossed the line from top to bottom, this is a downtrend, it is worth buying PUT options. In the image, you can see the downtrend in the MT4 terminal (taking advantage of the trend, place a PUT bet on the binomo.com website, the instructions are listed above):
If TRIX has crossed the line from bottom to top, this is an uptrend, it is worth buying call options. In the image, you can see the uptrend in the MT4 terminal (taking advantage of the trend, place a CALL bet on the binomo.com website, the instructions are listed above):
Trading with a divergence signal from the price
The TRIX divergence occurs on an uptrend, it is worth buying call options. In the image, you can see the divergence signal in the MT4 terminal (taking advantage of the trend, place a CALL bet on the binomo.com website, the instructions are indicated above):
TRIX convergence occurs in a downtrend, it is worth buying PUT options. In the image, you can see the divergence signal in the MT4 terminal (taking advantage of the trend, place a PUT bet on the binomo.com website, the instructions are indicated above):
Money management
Money management has long been the most important basic concept of trading, working correctly with which, it is easy and simple to increase the efficiency of options trading several times. If you want to get a stable profit from trading, the easiest way to achieve this is with the help of money management rules, which will help you quickly adjust your money management.
- Minimum capital: when working in trading, try to put a minimum capital on the purchase of an option; the price of such an option should not exceed 5% of the size of your account; Buy inexpensive options, then transactions will not affect your deposit so much. Using these basics of money management, you will save capital for a long time.
- Minimum deposit: when working in trading, try to spend the deposit economically when participating in transactions; when buying a specific asset, you do not need to transfer all capital to it; Try to maintain a positive state of the deposit, taking into account that this capital will still be needed in trading. Using these basics of money management, you will save your deposit for a long time.
- Minimum options: when working in trading, try to buy a minimum of options, starting, for example, with 2-3 assets; This rule is more likely to apply to beginners in trading; By becoming more confident in trading, you can gradually increase the number of assets traded. Using these basics of money management, you will work effectively from the very first steps in options.
- Minimum of emotions: when working in trading, try to always use only a serious working attitude, because on the stock exchange you will need analytics and the need to make informed decisions on which the productivity of trading depends; Remember that in trading it is not enough to rely only on experience, emotions and attitude, first of all, will make the results desired. Using these basics of money management, you will be able to make options trading your profession.
Expiration
Expiration is the moment when binary options trading ends, when market participants learn about the results of their forecasts. Today it is also one of the basic concepts in trading. Like money management, it can make trading much more successful.
Types of options:
- Ultra-short options – 30 seconds – 5 minutes.
- Short-term options – 10 minutes – several hours.
- Medium-term options – a day – a few weeks.
- Long-term options – a month – six months.
Is it allowed to extend the expiration?
It is allowed, not in all modern trading terminals. If during trading you realize that you have indicated an incorrect forecast, you can simply extend the expiration of the option, which will reduce losses and give a profit.
Expiration rules:
- For beginners of the exchange, it is better to work initially with long-term transactions that will guarantee stability and a minimum of risk of losses.
- It is better for experienced exchange players to work with such an expiration that will make trading and waiting for its end to be the most comfortable. Also, be careful when choosing a broker. Find out if you will be able to extend the expiration during trading, which will reduce losses several times.
- For those who need instant income from the exchange, it is better to work with short-term transactions that guarantee income in 30 seconds.
- For those who need a stable income from the exchange, it is better to work with long-term transactions that guarantee a good income.
Expiration in strategies with Trix
Expiration at a trend signal
Short-term trading: allowed; TRIX is able to generate high-quality signals of market trends, which will allow you to get high profits even in the case of express trading.
Medium-term expiration: allowed; TRIX is one of those indicators that very accurately determine profitable signals of market trends, which makes work on the exchange many times more productive; For reliability, it is worth using additional tools.
Long-term expiration: allowed; TRIX accurately determines profitable signals of market trends, and for a more accurate forecast, you can use all the knowledge about profitable strategies, fundamental and technical analysis, which will lead long-term trading to decent profits.
Expiration at the signal of crossing the zero mark
Short-term trading: allowed; TRIX shows a lot of high-quality signals of the market trend, which will allow you to get high profits even in the case of express trading.
Medium-term expiration: allowed; TRIX is one of the few indicators that very accurately determine profitable signals of market trends, which makes work on the exchange several times effective; For reliability, it is worth using additional tools.
Long-term expiration: allowed; TRIX accurately determines profitable signals of market trends, and for a more accurate forecast, you can use all the knowledge about profitable strategies, fundamental and technical analysis, which will lead long-term trading to the most profitable results.
Expiration at divergence and convergence signal
Short-term trading: allowed; TRIX demonstrates a large number of high-quality signals of market trends, which will allow you to achieve a high result even in the case of turbo trading.
Medium-term expiration: allowed; TRIX very accurately determines profitable signals of market trends, which makes work on the exchange several times effective; For reliability, it is recommended to use additional tools.
Long-term expiration: allowed; TRIX accurately determines profitable signals of market trends, and for an accurate forecast, use all the knowledge about profitable strategies, fundamental and technical analyzes, which will lead your trading to good results.
Expiration in the “Trix + Alligator
” strategy
Short-term trading: allowed; Both TRIX and Alligator indicators work perfectly together and accurately demonstrate profitable signals, which will allow you to achieve a high result even in the case of turbo trading.
Medium-term expiration: allowed; TRIX, together with Alligator, perfectly complement each other, accurately demonstrating profitable signals, which makes work on the exchange several times effective.
Long-term expiration: allowed; TRIX and Alligator qualitatively determine profitable signals of market trends, and for an accurate forecast, use all the knowledge about profitable strategies, fundamental and technical analysis, which will lead your trading to good results.
On the way to becoming a professional trader, special attention should be paid to studying the issue of expiration time, which will give you the opportunity to quickly reach the desired result. Get acquainted with the functional terminal of the leading broker in the Russian market Binomo, which offers a choice of convenient expiration times from 30 seconds to 1 day. Go to the broker’s website binomo.com, right now and make your trading profitable.
