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Creator: Definedge
The XO AMA indicator is a point-and-figure chart indicator developed by Prashant Shah.
The indicator is designed using the X, O, and vertical column properties of the Point & Figure chart.
AMA stands for Adaptive Moving Average indicator developed by Perry Kaufman. AMA also considers volatility and adapts to market trends. When volatility is high, the AMA indicator becomes relatively flat.
The AMA indicator can also be plotted on P&F charts using columns instead of bars or candles.
The XO AMA indicator is the adaptive moving average calculated on the Xs and Os rather than on the columns.
In a P&F chart, an “X” indicates a bullish print, while an “O” indicates a bearish print. The adaptive moving average is plotted on P&F charts using that property, which remains close to the price during strong trends.
A rising XO AMA indicates a bullish trend, whereas a declining XO AMA indicates a bearish trend.
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 also available in the System Builder of RZone & TradePoint. 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.