Description
Developed by Perry Kaufman, the KAMA is a trend indicator used to identify the overall trend. It does this by smoothing out the noise when the price fluctuates. In order to account for the volatility of the market, KAMA introduces a so-called efficiency ratio. This factor will reduce the moving average fluctuations when the volatility is peaking. In other words, it will give less importance to trends with very high volatility. This indicator is frequently used to spot trends and trend reversals.


Reviews
There are no reviews yet.