Kaufman Adaptive Moving Average — noise-adaptive trend.
What is KAMA?
Kaufman Adaptive Moving Average adjusts its smoothing based on market noise. It moves quickly in trending markets and slowly in choppy markets, reducing whipsaws.
Parameters (10/2/30)
KAMA(10,2,30): ER=10, Fast=2, Slow=30
Timeframes: 4h, 8h, or daily candles
Interpretation
Adapts to volatility automatically
Flat KAMA: Sideways/choppy market
Sloping up: Uptrend
Sloping down: Downtrend
Data refreshes periodically — not real-time
Trading Signals
Buy: Price crosses above KAMA
Sell: Price crosses below KAMA
Steeper slope = stronger trend
Price Overlay
Close Price: Actual closing price (same Y-axis, dashed violet)
KAMA flat near price = choppy, low-trend market
KAMA sloping with price = confirmed trend direction
Price crossing KAMA = potential directional change