KAMA indicator with selectable OHLC prices adapts to market volatility, closely following price when quiet and smoothing noise when volatile. Use to identify trend reversals and dynamic support/resistance levels.
This modification of the KAMA indicator allows you to select the type of prices from which the indicator is calculated. Kaufman Moving Average ( KAMA ) is a type of moving average which accounts not only for price trend but also for market volatility. It closely follows price when noise is low and smooths out the noise when the price fluctuates. Like all moving averages, the KAMA can be used to visualize the trend. If price crosses KAMA it indicates a directional change. Price can also bounce off the KAMA, which can act as dynamic support and resistance.
KAMA OHLC calculation is a bit complicated and but you can find more information Here
KAMA OHLC has four configurable parameters:
• Applied Price – Type of Price used for indicator calculation
• ER period – Number of bars used for calculation of Efficiency Ratio
• Short Period – Number of bars used for calculation of fast EMA (FC)
• Long period – Number of bars used for calculation of slow EMA (SC)
Indicator is implemented for: MT4/MT5/Tradestation/ Multicharts
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