Trading on one indicator can also be profitable if other significant factors are taken into account. For example, the time of the most optimal trading. There are no universal advisers and it is therefore logical that when working 24 hours a day, it works better at some moments, at some points worse. Therefore, each strategy that can eventually turn into an adviser is tested, after which a time interval is determined, at which the adviser gives the most frequent resultant entry signals. In this review we will not only describe the JMA indicator and the strategy based on it, but also describe the most successful conditions for its use.

What is the JMA indicator

JMA is one of the indicators for professional trading, which is a price level filter. His algorithm was developed in 1998 by trader M. Yurika. He, like most other technical tools, is based on moving averages. Its advantage is the almost complete absence of delay and a high level of smoothing.

JMA Indicator Settings:

  • Length. Smoothing parameter The larger it is, the greater the smoothing, but the less sharply the indicator reacts to the change in the price level. More input signals will appear, but their performance will also decrease;
  • Phase. Lag parameter The smaller it is, the more accurate the signals will be, but the less they will appear.

JMA is a type of adaptive moving average with greater sensitivity. One of its variations of display on the screen is a histogram that shows the reduced angle of inclination. And although you can meet the recommendations not to use the oscillator yourself, let us show by example that it can give accurate signals to the input.

We will earn on the EUR / USD currency pair. The timeframe is better to take time, on smaller timeframes the error is possible. Indicator settings: Lenght = 14, Phase = 0, levels 0.001, -0.001.

Conditions for opening a buy position:

  • trading is conducted only in the interval from 8.00 to 20.00 Eastern European time;
  • JMA displays a red bar (one or more) below -0.001;
  • the size of each subsequent column must be greater than the previous one. That is, there should be a tendency to increase;
  • the indicator draws a column that is lower than the previous one;
  • the candle on which the previous condition is fulfilled must be at least 5 points long and be bullish.

On the next candle you can open a deal with a stop of 15-30 points. Target income level – 10 points.

Conditions for opening a sell position:

  • trading is conducted only in the interval from 8.00 to 20.00 Eastern European time;
  • JMA displays a green bar (one or more) above 0.001;
  • the size of each subsequent column must be greater than the previous one. That is, there should be a tendency to increase;
  • the indicator draws a column that is lower than the previous one;
  • the candle on which the previous condition is fulfilled must be at least 5 points long and be bullish.

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That is, the conditions for opening a short position are the same, only with the condition of columns of a different color. As you can see, trading is not carried out purely on the JMA indicator, candlestick analysis is also included in the strategy, which is a confirmatory element of the strategy. The system works better in the trending market and at the time of the news release, you can trade during the flat. Like the strategy? We read analytics and share comments after the review!

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