*** NOTE: This is a repost with updated scripts to workaround the recent script engine changes ****
As the volatility rises, all Adaptive Moving Averages (AMA) become more sensitive and adapt faster to the price changes. As the volatility decreases, they slow down significantly compared to normal EMA. This makes it an excellent choice for detecting ranging markets (look for horizontal lines).
I have included 3 AMAs here: - Kaufman's AMA. This makes use of Kaufman's Efficiency Ratio as the smoothing constant. - Adaptive RSI. This adapts standard RSI to a smoothing constant. - Tushar Chande's Variable Index Dynamic Average (VIDYA). This uses a pivotal smoothing constant, which is fixed, and varies the speed by using a factor based on the relative volatility to increase or decrease the value of SC.
For reference, I have plotted an EMA(10). This uses a fixed smoothing constant.
This is my 25th indicators post (Yayy!), so decided to include a bunch of AMAs. Enjoy :)
Feel free to "Make mine" and use these in your charts. Appreciate any comments / feedback.
I ony see the script for Kaufman's AMA here. Where's the script for the other two?
LazyBear
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Vidya/KAMA are pointing to wrong AMAs, because, looks like, TV doesn't keep the alignment intact when publishing. Just match the colors to identify the correct AMA.
RV1458
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@LazyBear, I ony see the script for Kaufman's AMA here. Where's the script for the other two?