KAMA

Source

https://github.com/quadcode-tech/quadcodescript-library/blob/master/averages/kama.lua

Syntax Example

kama(length, fastMA, slowMA, source)

Overview

KAMA (Kaufman’s Adaptive Moving Average) belongs to the MA family, but is a bit different from the majority of Moving Averages. It adjusts its settings, depending on the market situation. This smoothing factor helps KAMA to be more responsive during higher volatility and smooth the price movements during significant trends.

Parameters

Parameter	Type	Purpose
length	integer	Smoothing constant (SC) period
fastMA	integer	Fast Moving Average period
slowMA	integer	Slow Moving Average period
source	series	Input series, taken into calculation

Example

instrument { name = "KAMA", overlay = true }

local length = input (21, "period", input.integer, 1 , 250  )
local fastMA = input (4,  "fast period",   input.integer, 1, 250)
local slowMA = input (30, "slow period",   input.integer, 1, 250)
local source = input (1,  "source", input.string_selection, inputs.titles_overlay)

input_group {
    "KAMA Line",
    color = input { default = "#57A1D0", type = input.color },
    width = input { default = 1, type = input.line_width}
}

local source_series = inputs [source]

change = abs (source_series - source_series[length - 1])
volatility = sum (abs(source_series - source_series[1]), length)

local er = 0

if nz (volatility [0]) ~= 0 then
    er = nz (change [0]) / nz (volatility [0])
end

local fastSC = 2 / (fastMA + 1)
local slowSC = 2 / (slowMA + 1)

local sc = (er * (fastSC - slowSC) + slowSC) ^ 2

kama = sc * source_series + (1 - sc) * nz(kama [1], source_series [0])

plot (kama, "KAMA", color, width)