Ultra Trend Indicator: Jurik Smoothing for Trend Signals
Summary
The document describes an indicator that compares smoothed measures of upward and downward price movement to show trend direction. It applies a Jurik-style smoothing method to current and prior closing prices, then accumulates directional counts across a configurable range of periods. The resulting positive and negative values appear as separate chart lines; their relative positions indicate an uptrend or downtrend.
Parameters such as the base period, progression, number of instances, smoothing, phase, and filter power affect responsiveness and noise reduction. The document suggests using lower base and smoothing periods for shorter-term signals and tuning settings by asset and timeframe. It describes crossings and sustained line ordering as possible reversal and continuation cues, respectively. No independent performance results are provided, and the source code is truncated. The author cautions that signals can be unreliable in sideways or highly volatile markets and recommends confirmation from other indicators and testing configurations before live use.
Key ideas
- The indicator compares smoothed upward and downward measures to infer trend direction.
- A Jurik-style filter is applied to price data and to the final directional values.
- The base period, progression, instance count, and smoothing settings alter signal responsiveness.
- Line crossings may suggest a change in direction, while sustained ordering may indicate continuation.
- The document provides no performance evidence and warns that noisy markets can produce false signals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.