Adaptive Moving Average

Creator : Perry J. Kaufman

Default period: 10

The Adaptive Moving Average indicator is shown as a single line on the chart.

It is a moving average line that adapts to the volatility of the instrument. The indicator considers the volatility of the instrument, and the slope of the moving average adjusts accordingly.

The average line will be relatively flat when volatility is higher. This results in fewer whipsaws. The average line will be smooth and upwardly trending when the trend is strong and bullish. The average line will be smooth and downwardly trending when the trend is strong and bearish.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is available in the System Builder on RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

Click here to learn more about the indicator.

The indicator is applicable to all types of charting. It is calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin-Ashi charts, and lines on Kagi charts. While the formula and interpretation of the indicators remain the same, they become more dynamic on these charts.