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Superior Technical Analysis


The charts below compare Jurik Tools with their classic counterparts.

     JMA vs. SMA

The most important features of a moving average are smoothness and low lag. The correct way to compare two moving average lines are to make them both have the same smoothness (and compare lag) or make them both have the same lag and you compare smoothness.

NOTE: Unscrupulous vendors ignore this guideline in order to make their "smart" indicators appear superior.

In this chart, both filters have the same overall smoothness. JMA (blue line) tracks price action with less lag than the SMA (simple moving average, red line). Note how well JMA responds to sudden rapid price movement.

A popular application is to let JMA substitute for the price line. This produces a smooth, low-lag proxy for price. This works well in a MACD where JMA is the fast line and either a triangular or double-weighted moving average is used for the slow line.

     DMX vs. DMI

DMI and DMX are derived from simpler indicators: DMI+ / DMI- (purple lines) and DMX+ / DMX- (blue lines). The smooth DMX plus/minus lines criss-cross with less false alarms than the noisy (jagged) DMI lines. Fewer false alarms means better trades.

     VEL vs. MOM

Momentum indicators focus on market trend direction and speed. Noise free estimates of speed are crucial in classic divergence analysis between market momentum and price. That is why we offer VEL, the remarkable, noise-free way to measure market velocity. Compare VEL (cyan line) to classic momentum (red line). Simply put, once you have VEL, why would you want to ever use classic momentum again?

Smooth, noise-free reversals are ideal for divergence analysis, where the relative magnitude of price reversals are compared to the relative magnitude of VEL reversals.

     RSX vs. RSI

RSI is a very popular technical indicator, because it takes into consideration market speed, direction and trend uniformity. However, the one widely criticized drawback of RSI (red line) is its noisy appearance. RSX (blue line) retains all the useful features of RSI, but with one important exception: the noise is gone!

RSX's smoothness takes the guesswork out of identifying turning points. ... And that means you can make decisions sooner, rather than later.

Also, setting RSX to slower speeds allows you to peform momentum analysis on RSX. This gives you a window into market acceleration that cannot be accurately measured using standard RSI.

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