{"product_id":"v02-c03-trip-pdf","title":"V.2:3 (91-93): TRIX: Triple Exponential Smoothing Oscillator by Jack K. Hutson","description":"TRIX: Triple Exponential Smoothing Oscillator\nby Jack K. Hutson\u003cbr\u003e\u003cbr\u003eRelating the use of Fourier spectrum analysis to stock or commodity data filter selection has been the\nsubject of a number of articles in Technical Analysis. In particular, Warren uses Fourier, in \"Optimizing\nTRIX: Further Analysis of Triple Exponential Smoothing\" (September 1983 Technical Analysis), to\nselect TRIX's filter coefficients. The problem with any exponential moving average type filter is to\nproperly choose \"alpha\", the filtering constant. Warren's article was important because he was able to\nmathematically manipulate our TRIX algorithm to obtain its transfer function. The transfer function is an\nimportant tool in the design of filters and may be used to precisely relate cycle frequency and filter\ncoefficients, such as \"alpha\" in TRIX.\u003cbr\u003e\u003cbr\u003eTRIX is obtained by triple exponentially smoothing the logarithm of daily market closes, then taking a\none day difference (momentum). In TRIX the \"alpha\" used for each pass through (three times) the\nexponential filter process is the same, thus simplifying optimization. Warren used a frequency spectrum\ngenerated by Fourier analysis of daily market closes to choose a cutoff frequency. This is an excellent\nexample of using a frequency spectrum of past data to estimate the significance of price moves. We\nshould be able to pinpoint where the power in a spectrum drops off and therefore where shorter cycles are\nnot useful for trading daily price swings. This point is called the high frequency cutoff frequency. Warren\nexplained how to convert cutoff frequency to TRIX \"alpha\" by the use of a chart in the above-mentioned\narticle. The following change to my original TRIX (July 1983 Technical Analysis) BASIC computer\nsubroutine eliminates the need of a chart. All that is required is the cutoff frequency in cycles per year.\nTRIX will then filter out all cycles that are less than the cutoff frequency.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133758173553,"sku":"\\V02\\C03\\TRIP.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ccd6cca3-19a4-471e-bfe4-308b33ba9cd5.jpg?v=1739651377","url":"https:\/\/shop.traders.com\/products\/v02-c03-trip-pdf","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}