Balance of Market Power with Jurik Smoothing and Deviation Bands

Summary

The document describes an indicator based on the Balance of Market Power concept. Its version smooths values with a Jurik filter rather than a simple moving average and constructs bands using a Jurik-based deviation measure instead of standard deviation. The stated design goal is faster response from the bands, while keeping the parameter set limited to smoothing and band periods.

The explanation is brief and does not define the underlying Balance of Market Power calculation, specify how the bands should be interpreted, or provide trading rules. It offers no charts, backtest, or comparative results to establish that the alternative filter or deviation calculation improves responsiveness or trading performance. The author recommends experimentation, so users would need to inspect the implementation and test parameter choices and behavior across instruments and market conditions before relying on the indicator.

Key ideas

• The indicator applies a Jurik filter to smooth Balance of Market Power values.
• Its bands use a Jurik-based deviation measure instead of standard deviation.
• The stated motivation is to make band response faster.
• The described configurable periods are smoothing and band periods.
• The document provides no trading rules or performance evidence, so experimentation is required.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.