3 MA Exponential Moving Average (TRIX) Forex Strategy

The 3 MA Exponential Moving Average (TRIX) forex strategy is a strategy that tries to eliminate noise in the market, thus delivering enhanced trading alerts.

The TRIX forex strategy combines the 3MAFan custom indicator along with the TRIX indicator.

Due to the nature of the indicators in use, signals gotten filtered out unimportant price movement leaving us with just vital price action.

Chart Setup

MetaTrader4 Indicators: Trix.ex4 (default setting), 3MAFan.ex4 (default setting)

Preferred Time Frame(s): 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Download 3 MA Exponential Moving Average (TRIX) Forex Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following chart or indicator patterns are in display:

  1. If the red line of the TRIX custom indicator crosses the aqua dotted line of the same indicator below the 0.00 level, it is a trigger to buy. An accompanying yellow upward pointing arrow is a confirmation to go long.
  2. If the turquoise line of the 3MAFan custom indicator crosses the blue and gold line upwards, it is a signal that price is bullish i.e. a buy signal.

Stop Loss for Buy Entry: Place stop loss below the turquoise line or below support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit on position(s) if the following rules or conditions hold:

  1. If the red line of the TRIX custom indicator crosses the aqua dotted line while it is above the 0.00 level as shown on Fig. 1.0. More so, if a deep blue color downward pointing arrow forms within the indicator within, it reinforces our exit or take profit rule.
  2. If price opens and closes below the turquoise 3MAFan custom indicator, it is a signal to exit or take profit accordingly.

Sell Entry Rules

Enter a sell in the market if the following rules or conditions hold sway:

  1. If the red line of the TRIX custom indicator crosses the aqua dotted line of the same indicator downwards and this is done above the 0.00 level, it is a sell alert. If we get a deep blue downward pointing arrow, it further confirms our sell.
  2. If the turquoise line of the 3MAFan custom indicator crosses the blue and gold line downwards, it is a signal that price is being pushed to the down side i.e. bearish signal.

Stop Loss for Sell Entry: Place stop loss above the yellow line or above resistance.

Exit Strategy/Take Profit for Sell Entry:

Exit or take profit on position(s) if the following is observed:

  1. If the red line of the TRIX custom indicator crosses the aqua dotted line upwards, while it is below the 0.00 level as seen on Fig. 1.1. More so, if a gold colored upward pointing arrow is formed within the indicator window, it strengthens our exit or take profit resolve.
  2. If price opens and closes above the turquoise 3MAFan custom indicator, it is a signal to exit or take profit accordingly.

Fig. 1.1

Free Download

Download the 3 MA Exponential Moving Average (TRIX) Forex Strategy

About The Trading Indicators

The 3MAFan is also known as the 3 Moving Average Fan indicator and is built upon the 5, 21, 55 MAs, offering traders the ability to determine trend on all timeframes.

The triple exponential moving average or TRIX momentum indicator was developed by Jack Hutson in the 1980’s.

It finds its use in the spotting of percentage change in a triple exponentially smoothed moving average.

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