OPEN-SOURCE SCRIPT
Jurik Velocity Index Approximation
🚀 JURIK VELOCITY INDEX APPROXIMATION (VEL)
The Jurik Velocity Index Approximation (VEL), engineered by gunebak4n, is an advanced, ultra-smooth, zero-lag momentum oscillator framework designed for PulseWire. Built upon the legendary signal-processing principles conceptualized by Mark Jurik (Jurik Research), this open-source implementation transforms classical price momentum into a noise-free, highly responsive velocity curve that pinpoints trend direction, momentum shifts, and market acceleration with surgical precision.
Classical momentum indicators suffer from a severe noise-versus-lag tradeoff: raw rate-of-change lines zig-zag violently, producing false alarms, while standard smoothing filters (such as moving averages) introduce unacceptable signal lag that degrades trade timing. VEL solves this by routing raw price momentum through an integrated Jurik Moving Average (JMA) engine. The result is an exceptionally smooth, lag-free velocity curve that detects directional reversals well ahead of traditional trend indicators.
💡 CORE DESIGN PRINCIPLES
🧭 Zero-Lag Smooth Momentum Engine
Classical momentum relies on raw price differentials, resulting in high-frequency noise. VEL strips out market chatter without adding lag, revealing the true underlying velocity of price movement.
🎛️ JMA Adaptive Filtering Engine
By passing the momentum input through a multi-stage Jurik filter, market noise is suppressed while preserving sharp turning points and critical reversal signals.
🎚️ Modular Phase & Power Control
Provides modular fine-tuning controls:
• Phase (-100 to +100): Adjusts the balance between lag reduction and overshoot prevention. Positive values accelerate responsiveness for fast-moving markets, while negative values yield smoother curves.
• Power: Controls the acceleration exponent of the smoothing curve, allowing traders to customize how aggressively the filter adapts to price velocity.
💡 KEY FEATURES
• ATR Normalization Engine: Optional volatility normalization scales momentum relative to ATR, making VEL scale-independent across Crypto, Forex, Equities, and Indices.
• Momentum Acceleration Histogram: Displays the difference between VEL and a secondary JMA signal line in a faded, visually discreet histogram to measure true momentum acceleration and deceleration.
• Multi-Timeframe (MTF) Integration: Fetch higher-timeframe velocity directly onto your execution chart for seamless macro trend alignment.
• Automated Divergence Detection: Built-in pivot scanner detects Bullish and Bearish divergences between price action and velocity oscillations.
• Dynamic Trend & Bar Coloring: Automatically colors chart price bars and the VEL curve based on real-time momentum direction.
• Comprehensive Alert Engine: Equipped with pre-configured, non-repainting alertcondition events for zero crossovers, signal crossovers, and divergence alerts.
🔬 MATHEMATICAL ARCHITECTURE
[STEP 1: Raw & Volatility-Normalized Momentum]
• Raw Momentum = Price - Price[Momentum Lookback]
• Volatility Scaling = (Enable ATR Norm) ? (Raw Momentum / ATR(14)) * 100 : Raw Momentum
[STEP 2: Primary JMA Velocity Pass]
• Derive Beta & Alpha Coefficients from Length and Power
• Apply Multi-Stage Recursive JMA Filter with Phase Ratio adjustment
• JMA(Normalized Momentum) => Primary VEL Output
[STEP 3: Acceleration Histogram Engine]
• Signal Line = JMA(VEL, Signal Length, Signal Phase, Signal Power)
• Acceleration Histogram = VEL - Signal Line
🛠️ USAGE FRAMEWORK
1. Zero Line Crossovers (Velocity Shift)
• VEL Crossing Above 0: Confirms positive price velocity (bullish momentum). Focus on long entries or trend continuations.
• VEL Crossing Below 0: Confirms negative price velocity (bearish momentum). Focus on short entries or trend continuations.
2. Histogram Slopes (Momentum Acceleration)
• Expanding Histogram: Indicates accelerating momentum in the current trend direction.
• Shrinking Histogram: Early warning of momentum decay before price actually turns.
3. Divergence Analysis
• Bullish Divergence: Lower price lows paired with higher VEL lows indicate seller exhaustion and an impending bullish reversal.
• Bearish Divergence: Higher price highs paired with lower VEL highs indicate buyer exhaustion and an impending bearish reversal.
⚙️ SYSTEM CHARACTERISTICS
• Zero Repainting: All calculations strictly evaluate on closed historical bar states.
• Fully Parameterized Inputs: Customize period length, phase, power, ATR normalization, MTF timeframes, divergence lookbacks, bar coloring, and color themes.
• Asset-Agnostic Engine: Operates with scale-independent precision across Equities, Forex, Crypto, Commodities, Futures, and Indices.
• Clean & Modern UI: Built to Pine Script v6 standards and optimized for visual clarity on both dark and light chart themes.
📌 CREDIT & ATTRIBUTION
The Jurik Velocity Index Approximation script is engineered and published by gunebak4n on PulseWire.
This indicator is based on the mathematical concepts of the Jurik Velocity Index (VEL) originally conceptualized by Mark Jurik (Jurik Research).
⚠️ DISCLAIMER
This script is an open-source community implementation and mathematical approximation of the VEL concept. It is not affiliated with, officially supported by, or endorsed by Mark Jurik or Jurik Research. This indicator is a technical analysis visualization tool and does not provide financial advice, automated trading signals, or profit guarantees. Always perform thorough backtesting and practice strict risk management.
The Jurik Velocity Index Approximation (VEL), engineered by gunebak4n, is an advanced, ultra-smooth, zero-lag momentum oscillator framework designed for PulseWire. Built upon the legendary signal-processing principles conceptualized by Mark Jurik (Jurik Research), this open-source implementation transforms classical price momentum into a noise-free, highly responsive velocity curve that pinpoints trend direction, momentum shifts, and market acceleration with surgical precision.
Classical momentum indicators suffer from a severe noise-versus-lag tradeoff: raw rate-of-change lines zig-zag violently, producing false alarms, while standard smoothing filters (such as moving averages) introduce unacceptable signal lag that degrades trade timing. VEL solves this by routing raw price momentum through an integrated Jurik Moving Average (JMA) engine. The result is an exceptionally smooth, lag-free velocity curve that detects directional reversals well ahead of traditional trend indicators.
💡 CORE DESIGN PRINCIPLES
🧭 Zero-Lag Smooth Momentum Engine
Classical momentum relies on raw price differentials, resulting in high-frequency noise. VEL strips out market chatter without adding lag, revealing the true underlying velocity of price movement.
🎛️ JMA Adaptive Filtering Engine
By passing the momentum input through a multi-stage Jurik filter, market noise is suppressed while preserving sharp turning points and critical reversal signals.
🎚️ Modular Phase & Power Control
Provides modular fine-tuning controls:
• Phase (-100 to +100): Adjusts the balance between lag reduction and overshoot prevention. Positive values accelerate responsiveness for fast-moving markets, while negative values yield smoother curves.
• Power: Controls the acceleration exponent of the smoothing curve, allowing traders to customize how aggressively the filter adapts to price velocity.
💡 KEY FEATURES
• ATR Normalization Engine: Optional volatility normalization scales momentum relative to ATR, making VEL scale-independent across Crypto, Forex, Equities, and Indices.
• Momentum Acceleration Histogram: Displays the difference between VEL and a secondary JMA signal line in a faded, visually discreet histogram to measure true momentum acceleration and deceleration.
• Multi-Timeframe (MTF) Integration: Fetch higher-timeframe velocity directly onto your execution chart for seamless macro trend alignment.
• Automated Divergence Detection: Built-in pivot scanner detects Bullish and Bearish divergences between price action and velocity oscillations.
• Dynamic Trend & Bar Coloring: Automatically colors chart price bars and the VEL curve based on real-time momentum direction.
• Comprehensive Alert Engine: Equipped with pre-configured, non-repainting alertcondition events for zero crossovers, signal crossovers, and divergence alerts.
🔬 MATHEMATICAL ARCHITECTURE
[STEP 1: Raw & Volatility-Normalized Momentum]
• Raw Momentum = Price - Price[Momentum Lookback]
• Volatility Scaling = (Enable ATR Norm) ? (Raw Momentum / ATR(14)) * 100 : Raw Momentum
[STEP 2: Primary JMA Velocity Pass]
• Derive Beta & Alpha Coefficients from Length and Power
• Apply Multi-Stage Recursive JMA Filter with Phase Ratio adjustment
• JMA(Normalized Momentum) => Primary VEL Output
[STEP 3: Acceleration Histogram Engine]
• Signal Line = JMA(VEL, Signal Length, Signal Phase, Signal Power)
• Acceleration Histogram = VEL - Signal Line
🛠️ USAGE FRAMEWORK
1. Zero Line Crossovers (Velocity Shift)
• VEL Crossing Above 0: Confirms positive price velocity (bullish momentum). Focus on long entries or trend continuations.
• VEL Crossing Below 0: Confirms negative price velocity (bearish momentum). Focus on short entries or trend continuations.
2. Histogram Slopes (Momentum Acceleration)
• Expanding Histogram: Indicates accelerating momentum in the current trend direction.
• Shrinking Histogram: Early warning of momentum decay before price actually turns.
3. Divergence Analysis
• Bullish Divergence: Lower price lows paired with higher VEL lows indicate seller exhaustion and an impending bullish reversal.
• Bearish Divergence: Higher price highs paired with lower VEL highs indicate buyer exhaustion and an impending bearish reversal.
⚙️ SYSTEM CHARACTERISTICS
• Zero Repainting: All calculations strictly evaluate on closed historical bar states.
• Fully Parameterized Inputs: Customize period length, phase, power, ATR normalization, MTF timeframes, divergence lookbacks, bar coloring, and color themes.
• Asset-Agnostic Engine: Operates with scale-independent precision across Equities, Forex, Crypto, Commodities, Futures, and Indices.
• Clean & Modern UI: Built to Pine Script v6 standards and optimized for visual clarity on both dark and light chart themes.
📌 CREDIT & ATTRIBUTION
The Jurik Velocity Index Approximation script is engineered and published by gunebak4n on PulseWire.
This indicator is based on the mathematical concepts of the Jurik Velocity Index (VEL) originally conceptualized by Mark Jurik (Jurik Research).
⚠️ DISCLAIMER
This script is an open-source community implementation and mathematical approximation of the VEL concept. It is not affiliated with, officially supported by, or endorsed by Mark Jurik or Jurik Research. This indicator is a technical analysis visualization tool and does not provide financial advice, automated trading signals, or profit guarantees. Always perform thorough backtesting and practice strict risk management.
Open-source script
In true PulseWire spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by PulseWire. Read more in the Terms of Use.
Open-source script
In true PulseWire spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by PulseWire. Read more in the Terms of Use.