Efficiency-based moving average that adjusts smoothing speed dynamically based on market conditions.
Calculates smoothing via Efficiency Ratio (directional movement vs. total volatility), responding quickly in trends and flattening during noise to avoid whipsaws.
Three-state color visualization (Green uptrend, Red downtrend, Light Blue ranging), configurable sensitivity parameters (Period, Fast/Slow smoothing, ER threshold), automatic switching between fast and slow modes, and dynamic support/resistance behavior deliver adaptive trend tracking for traders needing responsiveness in directional markets and stability during consolidation.
Features
Adaptive Algorithm
- Smoothing speed changes based on Efficiency Ratio (ER)—the ratio of directional movement to total volatility
- Responds quickly when efficiency increases
- Flattens when price is noisy to avoid whipsaws
- Dynamic distance from price based on market behavior
Three-State Visualization
- Green: Strong uptrend (ER above threshold + rising)
- Red: Strong downtrend (ER above threshold + falling)
- Light Blue: Ranging/choppy (ER below threshold)
- Instant visual confirmation of market conditions
Configurable Sensitivity
- 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)
Smart Adaptation
- Automatically switches between fast and slow smoothing
- Filters noise in choppy markets
- Catches trends early when conditions shift
- Works as dynamic support/resistance
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Check out my other indicators—each one built with production-level code quality and practical features traders actually need.
All free to use. But if you feel like sending coffee support, you can route it to tinyurl(dot)com/coffee-supply
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Disclaimer
Trading involves risk. This indicator is intended for technical analysis only — always apply proper risk management and trade responsibly.
Feedback & Improvements
If you have suggestions, feature requests, or ideas for enhancement, please leave a comment in the Discussion tab. Your feedback helps improve the indicator for everyone.
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