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    Kaufman Adaptive Moving Average (KAMA)
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      Kaufman Adaptive Moving Average (KAMA)

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        Article summary

        The Kaufman Adaptive Moving Average (KAMA) indicator is a moving average indicator that becomes more sensitive and adds extra weight to its average value when the market prices are steadily moving in a certain direction.

        1. KAMAi = KAMAi-1 + SCi x (Price -KAMAi-1)

        2. SCi = [ERi x (fastest - slowest) + slowest]2
        fastest = 2 / (fastest moving average period + 1)
        slowest = 2 / (slowest moving average period + 1)

        3. ERi = |Pricei - Pricei-n+1| / Sum
        Sum = |Pricei - Pricei-1| + |Pricei-1 - Pricei-2| + ... + |Pricei-n+1 - Pricei-n+1 - Pricei-n|

        where:
        KAMAi-1 – the KAMA value preceding the value for the period being calculated
        Price – the data price source
        SCi – the smoothing constant calculated for every period
        ERi – Efficiency Ratio calculated for every period

        Kairi Relative IndexKaufman Adaptive Moving Average

        INPUTS

        InputDescription
        LengthThe number of bars the indicator uses for calculation

        PLOTS

        The plot renders the data you are working with on the chart. You can show/hide a plot by clicking the corresponding item in the settings. Every plot has a set of basic settings that you can change: color, weight, and type.

        PlotDescription
        KAMAThe Kaufman Adaptive Moving Average plot
        Color

        Click the color rectangle under the plot's name to open the palette. Use the slider at the bottom to set the opacity of the color.

        Palette To create a custom color:
        1. Clickto open the color picker
        2. By using the slider at the bottom, adjust the main color
        3. Then, set a shade for the main color on the palette

        The custom-created colors are added to your palette. To remove a custom color, drag it out of the palette.

        Weight
        Change the value (in px) to adjust the thickness of the plot.
        Type
        The following plot types are available:
        • Linear. The plot is displayed as a line.
        • Column. The plot is displayed as a histogram.
        • Difference. The plot is displayed as a line which represents the difference between High and Low prices of the bar.
        • Points. The plot is displayed as points.
        • Text above candle. The plot is displayed as the price labels above candles on the chart.
        • Text below candle. The plot is displayed as the price labels below candles on the chart.
        • Triangle above candle. The plot is displayed as triangles above candles on the chart.
        • Color candle. The candles on candle-type charts are highlighted with specified colors.

        OVERLAYING

        Check Overlaying to display the indicator on the chart. Otherwise, the indicator is shown in a study pane down below.

        Note: To reset the settings, click Restore to Default next to the SETTINGS: INDICATOR'S TITLE
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