Kaufman Adaptive MA with Trend Vision is an efficiency-based moving average indicator that dynamically adjusts its smoothing speed according to market conditions. It calculates smoothing using the Efficiency Ratio (ER), which compares directional movement to total volatility, enabling the indicator to respond quickly during trending markets and flatten during noisy, ranging periods to reduce whipsaws.
Key features include a three-state color-coded visualization: green for strong uptrends, red for strong downtrends, and light blue for ranging or choppy markets, providing immediate visual insight into market states. Users can configure sensitivity parameters such as lookback period, fast and slow smoothing periods, and the ER threshold to tailor responsiveness.
The indicator automatically switches between fast and slow smoothing modes, adapting to changing market behavior. It also acts as a dynamic support and resistance tool, helping traders identify trend shifts early while filtering out noise in consolidation phases. This adaptive approach supports scalping and other trading strategies requiring both responsiveness and stability in directional and ranging markets.