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Jurik Moving Average (TOS)
- Categories: Indicator, ThinkOrSwim
- Tags: Adaptive, Moving Average, Trend
- Type: Free
The Jurik Moving Average for ThinkOrSwim is an adaptive moving average that reacts quickly to trends while smoothing out noise.
The Jurik Moving Average is unlike its sluggish cousins, the JMA is an adaptive moving average that reacts quickly to trends while smoothing out noise. Here's what sets the JMA apart:
- Adaptive speed: It adjusts its responsiveness based on market volatility, becoming faster in trends and slower in choppy markets. This means you get clear signals when it's time to make a move and avoid getting whipsawed by false breakouts.
- Reduced lag: Unlike traditional moving averages, the JMA minimizes the delay between price changes and its own movement, helping you capture opportunities before they disappear.
- No overshoots or undershoots: The JMA stays grounded, avoiding the exaggerated peaks and troughs that can trap you in bad trades.
The Jurik Moving Average (JMA) is powered by two key settings: period and phase:
Period:
- This value determines the smoothing factor of the JMA. A higher period results in a smoother line that reacts less to short-term price fluctuations. Conversely, a lower period creates a more responsive line that reacts quickly to changes in price.
- Imagine the period as the number of data points the JMA considers when calculating the average. A higher period considers more data and smooths out more noise, while a lower period focuses on a smaller window and reacts faster to recent trends.
- Common period values for JMA range from 13 to 21 for short-term analysis, and 50 to 200 for long-term analysis. Ultimately, the optimal period depends on your trading strategy and the specific market you're analyzing.
Phase:
- This input influences the overshoot and undershoot behavior of the JMA. It acts like a momentum adjustment, allowing the JMA to lead price slightly.
- A positive phase value makes the JMA more likely to overshoot price peaks and troughs, while a negative phase value encourages it to undershoot. A neutral phase (around 0) results in the JMA following price more closely.
- The phase can be used to fine-tune your trading signals. For example, you might prefer a slightly positive phase to catch early breakouts, or a slightly negative phase to avoid false signals from temporary price spikes.
Features:
- Custom data source.
- For those not looking for crossovers with other moving averages and only the trend, scaling can be applied.
Review the screenshots for setup and demonstration of usage.
This indicator is an adaption from TradingView. It has been ported and slightly modified.
Click here for a list of all of Thinkorswim's downloads.
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