Trix

The Trix is a momentum oscillator devised by Jack Hutson in 1980. Its peculiarity is that of being able to filter the small settlement movements of an asset that are of little significance with respect to the primary trend. When used as an oscillator, a positive value indicates an overbought market, while a negative value indicates an oversold market. Many analysts believe that, when the Trix crosses upward the zero line gives a BUY signal, and when it goes downward the zero line gives a SELL signal. Furthermore, the divergence between price and Trix may indicate significant market turning points.