KAMA (Kaufman Adaptive Moving Average)

Indicator Description

KAMA (Kaufman Adaptive Moving Average) is an adaptive moving average that automatically adjusts its smoothing level according to market volatility, responding quickly in trending markets and remaining stable in ranging markets.

Function Information

  • Function Name: KAMA
  • Input Parameters:
    • #Kline: K-line data
  • Parameter Settings:
    • timeperiod: Time period (default: 30)
  • Output: Moving average value

Calculation Principle

KAMA is calculated using the following formula:

ER = |Price - Price(n)| / Sum(|Price - Price(1)|)
SC = (ER * (fastest - slowest) + slowest)^2
KAMA = KAMA(1) + SC * (Price - KAMA(1))

Where:

  • ER is the efficiency ratio
  • SC is the smoothing constant
  • fastest and slowest are smoothing constants
  • Price is the current price
  • KAMA(1) is the KAMA value of the previous period

Usage Scenarios

  1. Trend identification and tracking
  2. Market volatility analysis
  3. Trading signal generation
  4. Support and resistance level judgment
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