Hey there, fellow traders! Today, we’re diving into the JSmooth MA, a unique Moving Average designed by Mark Jurik that can enhance your trading strategy on MetaTrader 5.
This powerful indicator features two adjustable parameters that you can tweak to fit your trading style:
- Period: This is the calculation period that defines how many past bars you want to consider.
- Applied Price: Choose which price type you want to use for calculations, whether it's the closing price, open price, or any other.
Here’s a quick look at the calculations behind the JSmooth MA:
JSM = PrevJSM + A4
Where:
A4 = (A3 - PrevJSM) * Alpha12 + Alpha2 * PrevA4
A3 = A1 + A2
A2 = (1-Alpha) * (Applied price - A1) + Alpha * PrevA2
A1 = (1-Alpha) * Applied price + Alpha * PrevA1
Alpha = 0.45*(Period-1) / (0.45*(Period-1)+2)
Alpha2 = Alpha * Alpha
Alpha12 = (1-Alpha) * (1-Alpha)
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