This is a TradeStation version of Scott Cong’s Adaptive Moving Average at least my interpretation of it, added filtering as well.
What is Scott Cong's Adaptive Moving Average?
Scott Cong's Adaptive Moving Average was created as an advantageous alternative to the KAMA (Perry Kaufman’s Adaptive Moving Average).
The difference between the two indicators are:
- Kaufman's Adaptive Moving Average emphasizes on direction over volatility to calculate an Efficiency Ratio smoothing coefficient.
- Scott Cong's Adaptive Moving Average uses the concept of Result Over Effort.
The CAMA is a smooth, consistent and responsive Moving Average which was designed purely for swing trading.