Parabolic Weighted Velocity: Difference of Weighted Averages

Summary

The document describes a velocity indicator as the difference between a Parabolic Weighted Moving Average and a Linear Weighted Moving Average. It says this construction is associated with what is commonly called Jurik Velocity, and presents a version with a user-adjustable power parameter that changes the weighting used in the averages.

Increasing the power gives more weight to the current price and makes the velocity calculation respond faster; lowering it produces a slower response. The note offers no formula, sample chart, parameter guidance, or performance evidence, so it explains the weighting trade-off without establishing how well the indicator forecasts prices or how it should be traded.

Key ideas

• The velocity measure is formed from the difference between parabolic and linear weighted moving averages.
• The described version lets the user adjust the power applied in the average calculations.
• Higher power places more emphasis on current prices and makes the measure faster.
• Lower power slows the indicator response.
• The document provides no trading rules or evidence of predictive performance.

Tags

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