JMA is still the "gold standard" by which all other market smoothing filters are compared against. Here are two examples. The first image compares JMA to the relatively more recent Hull Moving Average (HMA). Although both filters have low lag, HMA tends to overshoot when market momentum changes abruptly, whereas JMA response is clearly superior.

The next image compares JMA to Sierra Chart's adaptive moving average (SC-AMA). We see SC-AMA tends to undershoot when market price levels off.

Although trading strategies can use JMA in complex ways, one can also devise very simple strategies as well. The chart below shows trades triggered by one rule: go long if JMA is rising and short if JMA is falling. Because the trades in this example are triggered by changes in the direction of JMA, ulta-smooth lines are vital to its success and overshooting is not important. Therefore, one JMA parameter was adjusted to prioritize smoothness and low lag in the tradeoff with overshooting.

The trading strategy shown above is NOT included with the Jurik Technical Indicator Toolset.
This was shown for demonstration purposes only.

• Different time frames on a chart may produce different results.

• Please do not ask us for indicator parameter settings. Every market is different.

• Past performance of any trading system is never a guarantee of future performance.

• All trading strategies have risk and commodities/futures trading leverages that risk.