Jurik Moving Average Crossover Strategy

The Jurik Moving Average Crossover Strategy indicator provides a dynamic Keltner-style channel system designed to identify mean-reversion opportunities and trend exhaustion using low-lag moving averages.

Usage

The Usage section describes how the script can be used to identify potential entry and exit points in range-bound or trending markets. The strategy relies on the interaction between a fast-reacting Jurik Moving Average (JMA) and a volatility-based channel anchored to a slower JMA.

• Mean-Reversion Entries: When the Fast JMA breaks above the upper channel band and subsequently crosses back inside, a red dot appears. This suggests a failed upward breakout and a potential short entry toward the center line. Conversely, when the Fast JMA breaks below the lower band and crosses back above it, a green dot appears, signaling a potential long entry.
• Take Profit / Exit Signals: Orange dots appear when the Fast JMA crosses the center JMA line. These points serve as logical areas to take profits or close positions as the price has returned to its mean.
• Trend Confirmation: The center JMA line can be color-coded to show its current slope. If a long signal (green dot) occurs while the center line is still colored for a downtrend (maroon), traders may wait for the slope to shift or use the lack of color change as a signal that the market may continue lower.

Details

The script utilizes the Jurik Moving Average (JMA) algorithm, which is known for its ability to reduce lag while maintaining smoothness. The channel is constructed similarly to a Keltner Channel but substitutes the standard moving average for a JMA.

The center line is a slow JMA calculated over a user-defined period (default 30). The bands are then projected by multiplying the Average True Range (ATR) by a multiplier (default 1.5) and adding/subtracting it from the center line. A secondary, faster JMA (default length 5) acts as the "price representative," tracking immediate market movement more closely than the raw price action to filter out minor noise.

Settings

• Length: Sets the period for the center (slow) Jurik Moving Average.
• Phase: Adjusts the Jurik smoothing phase (-100 to 100) for the slow JMA.
• Power: Determines the sensitivity of the slow JMA calculation.
• Source: The price data used for calculations (default is Close).
• Highlight Up/Down: Toggles the color-coding of the center line based on its current direction.
• ATR Length: The lookback period for the Average True Range used to calculate channel width.
• ATR Multiplier: Controls the width of the upper and lower bands.
• Fast Length: Sets the period for the fast Jurik Moving Average used for crossovers.
• Fast Phase: Adjusts the smoothing phase for the fast JMA.
• Fast Power: Determines the sensitivity of the fast JMA calculation.

FAQ

How do I interpret the colored dots on the chart? Red dots indicate the Fast JMA has crossed back under the upper band (potential short), green dots indicate it has crossed back over the lower band (potential long), and orange dots indicate a cross with the center line (potential exit).

Can this indicator be used in trending markets? While designed for mean reversion, the color-coded center line helps identify the prevailing trend direction, allowing users to filter signals in the direction of the primary trend.

How can I access the Jurik Moving Average Crossover Strategy? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.