Kaufmans Adaptive Moving Average (KAMA)

Category: trend

An adaptive moving average that adjusts its sensitivity based on market noise (volatility) vs. efficiency, slowing down in choppy markets and accelerating during trends.

Formula

ER = |Price - Price_{n}| / \sum_{i=1}^{n} |Price_{i} - Price_{i-1}|, \alpha = [ER \times (SC_{fast} - SC_{slow}) + SC_{slow}]^2, KAMA = KAMA_{prev} + \alpha \times (Price - KAMA_{prev})

Inputs

• Period (default: 10)
• Fast_EMA_Period (default: 2)
• Slow_EMA_Period (default: 30)

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