Filtered Adaptive Moving Average for Reducing Whipsaws

Summary

The document describes an adaptive moving average based on Perry Kaufman’s KAMA and an approach attributed to Vitali Apirine. The adaptation uses the close’s position within the high–low range, and the indicator is presented as a faster alternative to KAMA or as a regular moving average. A filter is added to make slope-based color changes less frequent, with the aim of reducing false signals.

The proposed use is to follow the average itself or treat its color changes as signals. The document offers no backtest, market examples, parameter settings, or quantitative evidence that the filter reduces whipsaws. Signal quality and responsiveness will depend on the instrument, timeframe, and filter configuration; the description does not specify how these choices should be made. It presents the indicator as a technical tool rather than a complete trading system, so it does not define entries, exits, position sizing, or risk controls.

Key ideas

• The adaptive average adjusts using the close’s location within the high–low range.
• The method is presented as a faster alternative to KAMA.
• A filter reduces how often slope changes produce color changes.
• Users may interpret the line as a moving average or its color changes as signals.
• The document provides no performance testing or parameter guidance.

Tags

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