Jurik Moving Average ATR Bands for Extreme Reversal Signals

Summary

This indicator pairs an adaptive Jurik Moving Average (JMA) with upper and lower bands spaced by a multiple of average true range (ATR). Its rationale is that an asset reaching an extreme may react in the opposite direction, regardless of the prevailing trend. The bands therefore frame price extremes around a smoothed centerline.

The signal rules use HLC3: a cross back above the lower band marks a long entry, while a cross below the upper band marks a short entry. Settings control the JMA source, length and phase, plus ATR length and band width. The document advises that defaults may not suit every timeframe and favors a longer JMA length, but gives no comparative evidence for that preference. It publishes a short BTC/USDT futures test configuration without performance results. The rules are presented as an indicator rationale rather than a fully specified risk-managed system; position sizing, exits and transaction costs are not evaluated.

Key ideas

• The JMA provides a smoothed centerline whose responsiveness is adjusted through length and phase.
• ATR multiplied by a configurable factor sets the distance to the upper and lower bands.
• A cross above the lower band triggers a long signal, while a cross below the upper band triggers a short signal.
• The document frames the signals as reactions to price extremes but does not report evidence that they are profitable.

Tags

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