An intelligent moving average that adapts to market conditions—fast in trends, slow in noise—with visual confirmation of market state.

KAMA automatically adjusts its smoothing based on market efficiency. When price trends strongly, it responds quickly. When price chops sideways, it slows down to filter noise. The color-coded output instantly shows you what the market is doing.

What Makes It Different

• Adaptive algorithm: Smoothing speed changes based on Efficiency Ratio (ER)—the ratio of directional movement to total volatility
• Three-state visualization:
• • Green: Strong uptrend (ER above threshold + rising)
  • Red: Strong downtrend (ER above threshold + falling)
  • Light Blue: Ranging/choppy (ER below threshold)
• Configurable sensitivity: Adjust ER threshold to define what qualifies as "trending"
• Fast/Slow periods: Control how responsive KAMA becomes in trending vs. ranging conditions

Key Features

• Period: Lookback for efficiency calculation (default: 10)
• Fast Period: Smoothing in strong trends (default: 2)
• Slow Period: Smoothing in ranging markets (default: 30)
• ER Threshold: Minimum efficiency to qualify as trending (default: 0.3)

Perfect For

• Avoiding whipsaws in choppy markets—KAMA flattens when price is noisy
• Catching trends early—responds quickly when efficiency increases
• Visual market state confirmation—color tells you if conditions favor trending or ranging strategies
• Dynamic support/resistance—KAMA line adapts its distance from price based on market behavior