Discover and read the best of Twitter Threads about #Adaptivemovingaverage
Most recents (1)
Thread: Adaptive Moving Average (AMA)
AMA is an indicator devised by Perry Kaufman explained in his book Trading System and Methods. It is also known as Kaufman’s Adaptive Moving Average (KAMA).
#AMA #Adaptivemovingaverage #indicators #definedge
AMA is an indicator devised by Perry Kaufman explained in his book Trading System and Methods. It is also known as Kaufman’s Adaptive Moving Average (KAMA).
#AMA #Adaptivemovingaverage #indicators #definedge
Rate of change (ROC) is a study that measures how much price moved up or down from previous bar. The daily rate of change captures the trend. When we make it absolute, captures volatility.
Meaning,
Price went up or down by 10 points = trend
Price moved by 10 points = volatility
Meaning,
Price went up or down by 10 points = trend
Price moved by 10 points = volatility
So, a price move that shows us a trend, also shows us range. When price is trending, and range is high it reflects strong trend & momentum. When price is not moving in a direction, but range is high, the volatility or noise is more.
Image shows price fluctuation over 10 bars
Image shows price fluctuation over 10 bars
