KAMA
Kaufman Adaptive MA — adapts the smoothing speed to the level of market noise. Kaufman Adaptive Moving Average (KAMA) automatically adjusts its reaction speed depending on the “efficiency” of the price movement. In trending conditions it approaches a fast EMA; in a ranging market it practically stops. This reduces false signals during periods of consolidation.
Formula:
Direction = |Close - Close[er_period]|Volatility = SUM(|Close - Close_prev|, er_period)ER = Direction / VolatilitySC = (ER * (fast_k - slow_k) + slow_k)^2KAMA = KAMA_prev + SC * (Close - KAMA_prev)where fast_k = 2/(fast+1), slow_k = 2/(slow+1)Parameters
Section titled “Parameters”| Parameter | Type | Default | Range / Values |
|---|---|---|---|
Er Period | int | 10 | 1-100 |
Fast Period | int | 2 | 1-50 |
Slow Period | int | 30 | 1-200 |
Triggers
Section titled “Triggers”| Trigger | Direction | Condition | Description |
|---|---|---|---|
| Price crosses the line up | 🟢 Buy | Price crossed the indicator line from below to above. | The closing price crossed the indicator line from below to above. |
| Price crosses the line down | 🔴 Sell | Price crossed the indicator line from above to below. | The closing price crossed an arbitrary indicator line (MA, Supertrend, etc.) from above to below. |
| Price above the line | 🟢 Buy | The closing price is above the indicator line. | The closing price is above the indicator line (MA, Supertrend, etc.). Reflects the current position of price relative to the trend line. |
| Price below the line | 🔴 Sell | The closing price is below the indicator line. | The closing price is below the indicator line. |
