Kaufman Adaptive Moving Average (KAMA) - Fx trading indicators
Everyone else wishes a short-term, fast trading trend that works without large losses. That combination does perhaps not occur.
However it is feasible to have fast trading trends by which one must get in or from the market quickly, but
these have the distinct drawback to be whipsawed by market noise when the market is volatile in a sideways trending market.
Of these periods, the investor is jumping in and out of positions without any profit-making trend in sight. So that they can overcome the problem of noise and remain able to get nearer to the real modification for the trend, Kaufman developed an indicator that adapts to advertise movement.
This indicator, an adaptive going average (AMA), moves very gradually whenever areas are going sideways but techniques swiftly once the markets also move swiftly, alter directions or bust out of
a trading range.
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