Adaptive Moving Average – AMA – with filter, histogram version – indicator MetaTrader 5

Theory :

In “Adaptive Moving Averages” in this issue, author Vitali Apirine introduces an adaptive moving average (AMA) technique based on Perry Kaufman’s KAMA (Kaufman adaptive moving average). His update to the original KAMA allows the new method to account for the location of the close relative to the high–low range. The author describes a trading system that combines the AMA and KAMA, suggesting that the combination may reduce the number of whipsaws relative to using either moving average by itself.

The indicator is coded exactly as it is described by Vitali Apirine (including the usage of high and low prices for adapting). But in order to make it easier to use it in a “classical way” (ie: using some sorts of signals that we can get from it), this version has additional filter to make the slope change color changes less frequent and thus to make false signals appear in fewer occasions. That is then coded into a histogram version of the indicator that shows the state of the estimated trend

Usage :

You can use the color change of this indicator as signal