Adaptive Moving Average

The Adaptive Moving Average (AMA) technical indicator is used to plot a moving average with low sensitivity to noise in price series and is characterized by a minimum delay for determining the trend. It was developed and described by Perry Kaufman in his book “Smarter Trading”.

One of the disadvantages of various price series smoothing algorithms is that random price spikes can lead to false trend signals. On the other hand, smoothing leads to an inevitable delay in the trend stop or reversal signal. This indicator was developed to overcome these two shortcomings.

The indicator view in the chart.

Image 37035


The indicator has the following parameters:

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Settings

Period - setting of the indicator calculation period.

Fast Smoothing Constant - the smoothing coefficient for a small period.

Slow Smoothing Constant - the smoothing coefficient for a large period.

Common

Source - setting of the indicator calculation parameters:

  • Open
  • High
  • Low
  • Close
  • Volume

Drawing

Panel/Moving average period - selection of the indicator location in the chart:

  • New panel
  • Chart

Visualization

Show value - display of the indicator value on the price scale on the left.

Scale/Auto-scaling - if this option is on, the scale will be automatically calculated, based on the minimum and maximum indicator values, so that the indicator would fit in the chart.

Color - color setting of the indicator.

Visual type - visual setting of the indicator display in the chart:

  • Line
  • Histogram
  • Hash
  • Block
  • Cross
  • Square
  • Dots
  • Up arrow
  • Down arrow
  • Axis label
  • Hide

Line style - setting of the line display style:

  • Solid
  • Dash
  • Dash - dot
  • Dash - dot - dot

Width - setting of the indicator line width.

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