It is made up of two components, namely the bullish TRIX component which is displayed in TEAL colour, and the bearish component which is displayed in DARK PINK colour.
In the first step, we calculate the TRIX Moving Average of the Open price series, over the recent TRIX_PERIOD bars, which we refer to as TrixOpen.
If the value of the current TrixOpenis greater than the previous TrixOpen, it is considered bullish, and the TEAL bullish component value is set to the TrixOpen value.
On the contrary, if the current TrixOpen is lesser the previous TrixOpen, it is considered bearish, and the DARK PINK bearish component value is set to the TrixOpen value. Hence, the bullish TEAL component is always rising, and the bearish DARK PINK component is always falling.
BUY trade can be opened (or a SELL trade exited) when the TRIX candle indicator changes from bearish (DEEP PINK) to bullish (TEAL).
Similarly, SELL trade can be opened (or a BUY trade exited) when the TRIX candle indicator changes from bullish (TEAL) to bearish (DEEP PINK).