Everyone wants a short-term, fast trading trend that works without large losses. That combination does not exist. But it is possible to have fast trading trends in which one must get in or out of the market quickly, but these have the distinct disadvantage of being whipsawed by market noise when the market is volatile in a sideways trending market. During these periods, the trader is jumping in and out of positions with no profit-making trend in sight. In an attempt to overcome the problem of noise and still be able to get closer to the actual change of the trend, Kaufman developed an indicator that adapts to market movement. This indicator, an adaptive moving average (AMA), moves very slowly when markets are moving sideways but moves swiftly when the markets also move swiftly, change directions or break out of a trading range.
nAMA = 0.0
nAMA := nz(nAMA[1]) + nsmooth * (xPrice - nz(nAMA[1]))
HPotter
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@hexelbyte, Thank you. It will very helpful for other.
hadi_saadat
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@hexelbyte, I tried to change it but Ive got this error :
Cannot use a mutable variable as an argument of the security function.
any Idea how to overcome?
tackermann6371
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Hi there,
Should the default length be left at 21? What is the significance of the length?
Thanks for this!
HPotter
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@tackermann6371, You can use any length what will give good results.
nAMA = 0.0
nAMA := nz(nAMA[1]) + nsmooth * (xPrice - nz(nAMA[1]))