Combining DWMA and JMA Crosses for Trading Signals

Summary

This note describes an indicator that combines Double Weighted Moving Average (DWMA) and Jurik Moving Average (JMA) crosses into a single signal method. Both averages are described as smooth, and their combination is intended to produce a moderate number of signals rather than frequent crossings.

Signals come from one average crossing the other. The note cautions that the averages use different constructions, so period settings matter: some combinations can produce illogical results, while suitable settings may be useful. It provides no specific parameter values, chart examples, backtest results, or rules for entering and exiting trades. The claim of usefulness is therefore qualitative; the indicator would need testing across instruments and market conditions before its signals could be relied on.

Key ideas

• The method combines DWMA and JMA in one indicator.
• Crosses between the averages are used as trading signals.
• The two averages are described as smooth, with the combination intended to limit signal frequency.
• Period selection matters because some combinations may produce illogical signals.
• The note gives no quantitative evidence or validated parameter settings.

Tags

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