Bollinger Stop Bands with Three Risk Levels and JMA Smoothing

Summary

This indicator description adapts Bollinger-based stops to show three stop lines at once. The line with the greatest risk is presented as the ultimate stop, while the other two can serve as tighter stops or as earlier warnings of a possible market change. A color shift is also suggested as a visual cue for trend direction.

The method replaces standard averages with the Jurik Moving Average and uses fast EMA deviation in place of standard deviation for trend and risk calculations. The description claims these choices respond faster and produce smoother results, but supplies no chart, test results, or comparison to validate that claim. It says any of the lines may be used as an order stop and advises experimenting with parameters before applying the indicator in live trading; suitable settings and stop behavior may depend on the instrument and market conditions.

Key ideas

• The indicator calculates three Bollinger-style stop lines with different risk levels.
• The highest-risk line is designated as the ultimate stop, while tighter lines can provide earlier warnings.
• Jurik Moving Average smoothing and fast EMA deviation replace standard averaging and deviation methods.
• The description provides no empirical performance evidence and recommends parameter experimentation.

Tags

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