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technical_indicators:kaufman_s_adaptive_moving_average [2019/09/07 00:27] betseyp [Overall Downtrend with Price Crossing Below KAMA] |
technical_indicators:kaufman_s_adaptive_moving_average [2021/05/26 21:41] betseyp |
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| Developed by Perry Kaufman, Kaufman's Adaptive Moving Average (KAMA) is a moving average designed to account for market noise or volatility. KAMA will closely follow prices when the price swings are relatively small and the noise is low. KAMA will adjust when the price swings widen and follow prices from a greater distance. This trend-following indicator can be used to identify the overall trend, time turning points and filter price movements. | Developed by Perry Kaufman, Kaufman's Adaptive Moving Average (KAMA) is a moving average designed to account for market noise or volatility. KAMA will closely follow prices when the price swings are relatively small and the noise is low. KAMA will adjust when the price swings widen and follow prices from a greater distance. This trend-following indicator can be used to identify the overall trend, time turning points and filter price movements. | ||
| - | ===== Calculation ===== | + | ===== KAMA Calculation ===== |
| There are several steps required to calculate Kaufman's Adaptive Moving Average. Let's first start with the settings recommended by Perry Kaufman: KAMA(10,2,30). | There are several steps required to calculate Kaufman's Adaptive Moving Average. Let's first start with the settings recommended by Perry Kaufman: KAMA(10,2,30). | ||
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| </code> | </code> | ||
| - | ===== Calculation Example/Chart ===== | + | ==== Calculation Example/Chart ==== |
| The images below show a screenshot from an Excel spreadsheet used to calculate KAMA and the corresponding QQQ chart. | The images below show a screenshot from an Excel spreadsheet used to calculate KAMA and the corresponding QQQ chart. | ||
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| {{:technical_indicators:kaufman_s_adaptive_moving_average:kama-5-spyshch.png|KAMA Chart}}\\ | {{:technical_indicators:kaufman_s_adaptive_moving_average:kama-5-spyshch.png|KAMA Chart}}\\ | ||
| - | [[https://stockcharts.com/h-sc/ui?s=SPY&p=D&yr=0&mn=6&dy=0&id=p71426978293|Click here for a live version of the chart.]] | + | [[https://stockcharts.com/h-sc/ui?s=SPY&p=D&yr=0&mn=6&dy=0&id=p17622947507|Click here for a live version of the chart.]] |
| ===== Suggested Scans ===== | ===== Suggested Scans ===== | ||
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| For more details on the syntax to use for KAMA scans, please see our [[https://support.stockcharts.com/doku.php?id=scans:indicators#kaufman_s_adaptive_moving_average_kama|Scanning Indicator Reference]] in the Support Center. | For more details on the syntax to use for KAMA scans, please see our [[https://support.stockcharts.com/doku.php?id=scans:indicators#kaufman_s_adaptive_moving_average_kama|Scanning Indicator Reference]] in the Support Center. | ||
| - | ===== Further Study ===== | ||
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| - | From the creator of the KAMA indicator, Perry Kaufman, //Trading Systems and Methods// offers detailed information on indicators, programs, algorithms, and systems, including details on KAMA and other moving average systems. | ||
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| - | |**Trading Systems and Methods** \\ Perry Kaufman | | ||
| - | | [[https://store.stockcharts.com/products/new-trading-systems-and-methods-5th-edition|{{:technical_indicators:kaufman_s_adaptive_moving_average:store_kaufman_tradingsystemsandmethods.png}}]] | | ||
| - | | [[https://store.stockcharts.com/products/new-trading-systems-and-methods-5th-edition|{{:store:buynowbuttone.jpg?nolink&}}]] | | ||
| ===== Additional Resources ===== | ===== Additional Resources ===== | ||