RSS
Twitter
Facebook
LinkedIn
Newsletter
Adaptive Moving Average
Posted By: TradersLog
Perry Kaufman introduced the Adaptive Moving Average in his book Smarter Trading.
Kaufman’s indicator uses a ratio that compares price direction with the level of volatility.
This Adaptive Moving Average is designed to address the problem of choosing between a fast or slow moving average. The speed of the Adaptive Moving Average automatically adapts itself to the level of market volatility.
The Adaptive Moving Average moves slower in a sideways market and faster in a trending market.
Leave a Reply
By submitting a comment here you grant Traders Log a perpetual license to reproduce your words and name/web site in attribution. Inappropriate or irrelevant comments will be removed at an admin's discretion.