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Introduction

Day traders use trading systems as their instructions in the service of making their trades. Trading systems stock up exact entries and exits, so that day traders can trade as efficiently as possible. Day trading systems usually use a price chart, and one or more indicators, and the charts are updated in real time.

Some trading systems are designed for short term trades (anywhere from a scattering minutes to a couple of hours), and others are designed for long term trades (several hours). The TRIX reversal trading system is primarily a short term system, but it can be adapted to suit long term trading.

Chart Settings

The TRIX reversal trading set-up uses a bar or candlestick price chart based upon a short term timeframe (from 1 to 5 minutes), with a without warning term TRIX (between 3 and 15 bars) using the to be expected price as its input (the average of the high, low, and closing prices of each bar). The trade is based upon the TRIX reversing its charge instructions, which indicates that the appraisal has started moving in the opposite direction.

TRIX Explanation

The TRIX is calculated using a triple smoothed exponential active average (which is the same as three consecutive exponential exciting averages). The TRIX value is the difference between the previous and current moving average values, and is displayed as a value vulnerable and below a zero line. When the TRIX is above the zero line, the price has upwards momentum, and when the TRIX is below the zero line, the price has downwards momentum.

The following step by discordant with tutorial of the TRIX trading system, use s the NQ (NASDAQ 100) futures market, but exactly the same steps should be toughened on whichever markets you are trading with this system. The illustration charts are 3 minute bar charts, with a 9 bar TRIX of the standard price (the average of the high, low, and close of each bar).

1. Introduction
2. Open a Chart
3. Add the TRIX
4. Wait for the TRIX Reversal
5. Enter your Trade
6. Manage your Trade
7. Repeat the Trade
8. Trading Reports and Questions