Adaptive Moving Average (AMA)

The adaptive moving average moves slowly when prices are moving sideways and moves swiftly when prices move swiftly. The basic rule is to buy when the AMA turns up, and sell when the AMA turns down.

Presentation

adaptMA

Above is a One Minute Bar Chart of Intel(INTC). The Adaptive Moving Average is seen as a red line in the chart. This moving average uses the preferences seen below. The Preferences

Formula

adaptMAPrefs

  • AMA Period Period used to calculate the Direction as seen in the formula above. (10 is recommended)
  • Fast SC Period Period used to calculate the fast smoothing constant (2 is recommended)
  • Slow SC Period Period used to calculate the slow smoothing constant (30 is recommended)
  • AMA Color Color of the AMA line in the chart.
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