Adaptive Moving Average Using Close Location in the Price Range

Summary

This adaptive moving average method builds on Perry Kaufman’s KAMA and incorporates where the closing price sits within the high–low range when adjusting the average. The document attributes the updated approach to Vitali Apirine and says the indicator follows his described method, including its use of high and low prices for adaptation.

The AMA can be applied like a conventional moving average and is described as a faster substitute for KAMA. The associated trading system combines AMA and KAMA, with the suggestion that using both may reduce whipsaws compared with either average alone. This is presented as a proposed benefit, not as a demonstrated result: the document includes no formula, parameter settings, backtest, or performance statistics. It therefore outlines the adaptation concept and intended use, while leaving implementation and empirical assessment largely unspecified.

Key ideas

• The adaptive average builds on KAMA and uses close location within the high–low range for adaptation.
• High and low prices contribute to the indicator’s adaptive behavior.
• The AMA is presented as a faster alternative to KAMA.
• Combining AMA with KAMA is suggested as a way to reduce whipsaws.
• The document provides no empirical evidence for the suggested improvement.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.