T3-Trix- Vertex FX Indicator

T3 Trix is a powerful VertexFX client side VTL indicator that gives excellent entry and exit signals. It is based on the concept of TRIX, which is the Triple Exponential Average, and smoothing the differential between the two averages.
The T3 Trix has two components, then faster component (DARK BLUE line), and the slower component (LIGHT BLUE line). The indicator can be applied using the Open price or the Close price. In the first step, we calculate the Exponential Moving Average (EMA) for the T3_PERIOD_A. In the second step, we calculate the Exponential Moving Average (EMA) for the T3_PERIOD_B. Both these values are smoothed using the smoothing constant HOT.
These are further smoothed once more using the second derivative of the smoothing constant. If the DIFFERENTIAL setting is applied, the TRIX is calculated based upon the difference of these two computed EMAs.
This result is the fast TRIX - which is the DARK BLUE line, whereas its smoothed result using the HOT smoothing constant is the LIGHT BLUE line - also called the slow TRIX. This indicator is very useful when markets are trending, and it is capable of catching trends early on as it eliminates lag.
BUY - Enter BUY trade when the DARK BLUE TRIX indicator closes above the LIGHT BLUE TRIX indicator. Do not enter trade if candle has gap-up opening. Place stop-loss below nearest Swing Low.
SELL - Enter SELL trade when the DARK BLUE TRIX indicator closes below the LIGHT BLUE TRIX indicator. Do not enter trade if candle has gap-down opening. Place stop-loss below nearest Swing High.