Normalized Jurik Moving Average [QuantAlgo]

Upgrade your investing and trading strategy with the Normalized Jurik Moving Average (JMA), a sophisticated oscillator that combines adaptive smoothing with statistical normalization to deliver high-quality signals! Whether you're a swing trader looking for momentum shifts or a medium- to long-term investor focusing on trend validation, this indicator's statistical approach offers valuable analytical advantages that can enhance your trading and investing decisions!

The foundation of this indicator lies in its unique dual-layer calculation system. The first layer implements the Jurik Moving Average, known for its superior noise reduction and responsiveness, while the second layer applies statistical normalization (Z-Score) to create standardized readings. This sophisticated approach helps identify significant price movements while filtering out market noise across various timeframes and instruments.

Example:



Key Components:

• Jurik Moving Average (JMA): An advanced moving average calculation that provides superior smoothing with minimal lag.
• Statistical Normalization: Z-Score based scaling that creates consistent, comparable readings across different market conditions.
• Dynamic Zone Detection: Automatically identifies overbought and oversold conditions based on statistical deviations.

Features:

• Color-adaptive oscillator line that reflects momentum strength and direction
• Statistically significant overbought/oversold zones for trade validation
• Smart gradient fills between signal line and zero level for enhanced visualization
• Clear long (L) and short (S) markers for validated momentum shifts
• Intelligent bar coloring that highlights the current market state
• Customizable alert system for both bullish and bearish setups

Availability:

• FREE
• Open-Source

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