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Note: This download requires NinjaTrader 8 release 8.1.3 or newer.

The first Adaptive Moving Average (AMA) for NinjaTrader was first conceived in the 1970's. Any search online of adaptive moving averages will likely yield the Kaufman Adaptive Moving Average (KAMA) which is a standard indicator that comes with NinjaTrader 8 and is also an indicator available here for the ThinkOrSwim platform. This should not be confused with the moving averaged presented here.

The difference between this indicator and KAMA is the way the efficiency ratio (ER) is calculated. For the presented indicator, ER is calculated based on a data input price relative to high and low prices. Smoothing coefficients are also a feature of this indicator. Data is smoothed with exponential moving averages, a fast one, and a slow one. The ThinkOrSwim Learning Center provides the following explanation:

"Based on the ER value, the indicator selects a smoothing coefficient for the exponential moving average to be applied to the price data. By default, the maximum possible value of the ER (perfect trending conditions) corresponds to the smoothing coefficient of a 30-period EMA, while the minimum possible ER value (conditions of extreme volatility) corresponds to that of a 2-period EMA. ER values in between correspond to smoothing constants derived from a quadratic equation proposed by Perry Kaufman."

Adaptive Moving Average Features:

• Custom data input. The user can use data input other than closing price.
• Custom color and style.

Review the screenshots below for setup options. The AMA is paired with the KAMA in one of the screenshots.

This indicator comes bundled with other adaptive moving averages and other indicators:

• Wilders Moving Average (Wilders)
• Arnaud Legoux Moving Average (ALMA)
• Adaptive Exponential Moving Average (AEMA)
• Fractals Adaptive Moving Average (FRAMA)
• Kaufman Adaptive Moving average (KAMA)
• Daily VWAP

Review the screenshots and video for setup options.

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