Adaptive Moving Average (AMA)
This indicator is either quick, or slow, to signal a market entry depending on the efficiency of the move in the market.
AMA = AMA(1) + α * (Close - AMA(1))
- α = [(VI * (FC - SC)) + SC] ²
- VI = Users defined measure of volatility or trend strength.
- SC = 2 / (SN + 1)
- FC = 2 / (FN + 1)
- FN = Slow moving average < SN