In 1980 the mathematician Jack Hutson developed its indicator Technical Analysis trichomes (Triple Exponential Moving Average). He is represented by a triple smoothed moving line. This line copies a maximum movement of the asset, throwing out unwanted noise. And here is a live graph indicator.
Being trend Trix indicator It helps traders determine the price reversal point. The curve is moving relative to the zero mark.
In her motion, we can get good signals to the purchase option:
- When crossing the zero line from top to bottom, it is necessary to open an option PUT.
- When crossing the zero line from the bottom up, it is necessary to open an option CALL.
As Triple EMA indicator eliminates unnecessary noise, I advise you not to use it for short-term trading. it works best with a timeframe of an hour and more. Ideally, you should reinforce the indicator signals other technical analysis tools. So you will avoid mistakes and be able to show good results in trading binary options.
Another point. Indicator Triple EMA It works well when Thou pronounced trend. If you watch the flat is on the market, do not use this indicator in its analysis.
In the market analysis, the Moving Average is the most popular trend indicator. No wonder it is used by absolutely all pros in the stock and foreign exchange markets. MA is the basis of other author modified indicators. It is also taken as the basis for instruments such as MACD and Bollinger Bands.
The intersection of the MA indicator triple EMA is the main and most important signal. But there is a second no less effective - this is a divergence. It is peculiar to many oscillatory indicators described by me earlier.
Bearish divergence occurs when the price on the chart rises, and the Triple EMA indicator line falls. This is the first signal that the uptrend will soon change to a downward trend. Therefore, we wait for the appearance of signals to open deals for a fall.
Bullish divergence is the exact opposite: the price falls on the graph, and the Triple EMA line is growing. This is the first signal for a future change of direction to ascending, you can open a deal to increase in the long term.
Despite the fact that its main purpose is to determine a trend, many traders use it as an oscillator. But still, in the course of testing, it was revealed that it demonstrates more profitable transactions, if we use it in trading with the trend.