Kaufman adaptive moving average (KAMA)
An average that speeds up in a clean trend and slows down in noise.
Formula
ER = |net change over N| ÷ Σ |bar-to-bar changes| sc = [ER × (2 ÷ (fast + 1) − 2 ÷ (slow + 1)) + 2 ÷ (slow + 1)]² KAMA = KAMAₚᵣₑᵥ + sc × (Price − KAMAₚᵣₑᵥ)
How to use it
Flattens in sideways markets, so fewer false crossings than a fixed average.
In Kereon
Charts · Superchart. Defaults: efficiency over 10 bars, fast 2, slow 30; seeded with the close at the first full window.
Also called: kaufman, adaptive.