Kaufman Adaptive Moving Average Smoothing and Trend Markers

Summary

This brief description concerns a version of Kaufman’s Adaptive Moving Average (AMA), an adaptive smoothing indicator used to follow price trends. It says the implementation modifies the smoothing ratio by raising it to a power, controlled by an external parameter G. The default power is 2, which the document identifies as matching the original approach. It also notes that the indicator displays colored dots to mark trend direction.

The text offers only a short description of implementation choices; it does not provide the AMA formula, parameter guidance, trading rules, charts, code, or performance evidence. It mentions a dispute over attribution of the power value but says the issue has little practical importance. Readers can learn what this version changes and how its trend markers are presented, but cannot reproduce or evaluate the indicator fully from the description alone. No asset class, testing period, or evidence of trading effectiveness is specified.

Key ideas

• This indicator is a version of Kaufman’s Adaptive Moving Average.
• Its smoothing ratio is raised to a power controlled by an external parameter.
• The stated default power is 2, matching the original approach described.
• Colored dots are used to indicate the trend direction.
• The document provides no trading rules or performance evidence.

Tags

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