//@version=4
// Copyright (c) 2018-present, Alex Orekhov (everget)
// Kaufman Adaptive Moving Average script may be freely distributed under the terms of the GPL-3.0 license.
study("Kaufman Adaptive Moving Average", shorttitle="KAMA", overlay=true)
length = input(title="Length", type=input.integer, defval=14)
fastLength = input(title="Fast EMA Length", type=input.integer, defval=2)
slowLength = input(title="Slow EMA Length", type=input.integer, defval=30)
src = input(title="Source", type=input.source, defval=close)
highlight = input(title="Highlight ?", type=input.bool, defval=true)
mom = abs(change(src, length))
volatility = sum(abs(change(src)), length)
// Efficiency Ratio
er = volatility != 0 ? mom / volatility : 0
fastAlpha = 2 / (fastLength + 1)
slowAlpha = 2 / (slowLength + 1)
alpha = pow(er * (fastAlpha - slowAlpha) + slowAlpha, 2)
kama = 0.0
kama := alpha * src + (1 - alpha) * nz(kama[1], src)
kamaColor = highlight ? kama > kama[1] ? color.green : color.red : #6d1e7f
plot(kama, title="KAMA", linewidth=2, color=kamaColor, transp=0)
Overview
Kaufman Adaptive Moving Average computes an Efficiency Ratio by comparing price directional change over a specified period to overall market volatility, dynamically blending fast and slow exponential smoothing constants. The indicator plots directly on the main price chart and features customizable parameters for length and EMA constants, along with optional directional color highlighting.
The inputs you can change from the gear icon on the chart. Defaults are the author's.
Setting
Type
Default
Variable
Length
int
14
length
Fast EMA Length
int
2
fastLength
Slow EMA Length
int
30
slowLength
Source
source
close
src
Highlight ?
bool
true
highlight
Third-party code. ForexR did not write, test or endorse this script, and the summary above was generated automatically from its code and README. Indicators describe the past, and a strategy's backtest can look better than live trading, especially when a script repaints. Check it in the Strategy Tester and on a demo account before you rely on it.
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