Building a Jurik MACD from Jurik Moving Averages

Summary

This document explains a variant of the Moving Average Convergence Divergence indicator in which its fast and slow averages are calculated with a recursive Jurik-style moving-average procedure. Their difference forms the MACD line, and a conventional moving average of that line serves as the signal line. The included ProRealTime example exposes fast, slow, signal, and power settings, and uses price as its input.

The rationale presented for the Jurik moving average is that smoothing with less lag could improve indicator timing. That rationale is asserted rather than supported here with comparative tests, performance data, or a full account of the method’s limitations. The document provides an implementation example, but no entry, exit, or position-sizing rules and no evidence that the variant improves trading outcomes. Traders would need to verify the code’s behavior, initialization, and parameter choices on their platform and test it against a suitable baseline before drawing conclusions about its usefulness.

Key ideas

• The Jurik MACD uses a Jurik-style fast average and slow average in place of standard moving averages.
• The difference between those averages is the MACD line, with a moving average of that line as the signal.
• The example exposes parameters for the fast and slow periods, signal period, and smoothing power.
• The claimed timing and smoothness advantages are not backed by comparative evidence in the document.
• The indicator description does not provide a complete trading or risk-management strategy.

Tags

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