Perry Kaufman's Adaptive Moving Average (KAMA) is a moving average that was created to include market noise or volatility. Adaptive Moving Average will follow prices:
- When the price swings small and insignificant
- Will adjust when the price swings widen and follow prices from a greater distance
Making this indicator especially useful for trends because it not only combats noise but also does a remarkable job at being less laggy.
Example: Adaptive Moving Average shown on a ProRealTime Chart
This is a Mladen's T3 Demarker with the Demarker period being controlled by phase accumulation index, indicator coloring is based on slope change as is arrows option. Indicator also has divergence.