Kaufman Adaptive Moving Average Indicator: Features of Use

The Kaufman Adaptive Moving Average (KAMA) indicator is a unique adaptive moving average that dynamically changes its sensitivity depending on market conditions. Unlike traditional moving averages, KAMA takes into account not only price but also volatility and the rate of change of the market. This allows it to more accurately reflect trends, minimizing false signals during sideways market movements. KAMA is especially useful for traders operating in volatile markets as it helps identify real trends and avoid noise.