Momentum Indicator Comparison: Better Momentum vs Jurik RSX & VEL
Got a great email from Mike:
“How does the Better Momentum indicator compare to Jurik’s RSX … I’m not asking you to disrespect anyone in your answer, just an honest reply from being in the trenches as a trader would be appreciated.” Mike
Mark Jurik is a brilliant engineer and has done amazing work creating smooth, minimum lag indicators. I’ve bought a lot of his indicators and in fact I have used the Jurik Moving Average (JMA) to pre-process (smooth) data for the Better Sine Wave indicator. You can check out his website here.
The RSX is Jurik’s version of the popular RSI indicator – but smoother. He also has a momentum indicator called VEL. I’ve bought and tested both. To answer the question, there are 2 differences between Jurik’s RSX (and VEL) and the Better Momentum indicator:
- Better Momentum is based on volume and measures waves of buying and selling. RSX (and VEL) are based on price alone.
- Better Momentum is more “jagged” and not as smooth as RSX (and VEL). This does not bother me, as I’m trying to identify peaks in buying and selling for the divergence calculations – if I add smoothing it adds a delay to the divergence patterns showing up.
I hope that helps explain the major differences. The video above compares these three momentum indicators: RSX, VEL and Better Momentum.
Just a note for Better Momentum indicator owners. In the video I have extreme buying and selling levels marked with large cyan dots. I’m experimenting with this feature and it may make it into the next version of Better Momentum.
Good luck with your Emini trading.