Adaptive Moving Average AMA
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.