Moving Avg Adaptive Filter
The Moving Avg Adaptive Filter (MAAF) was authored by Perry Kaufman in the Stocks and Commodities Magazine 03/1998. The MAAF uses price, previous price and a prior price in a series of mathematical manoeuvres including feedback to arrive at its final form. The user may change the input (close), period length and filter value. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Moving Avg Adaptive Filter
Moving Avg Adaptive Filter may be used in conjunction with other indicators. No trading signals are given.
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Go to the top menu, choose Study>Moving Average>Moving Avg Adaptive Filter
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//input = price, user defined, default is close
//period = user defined, default is 10
//filter = user defined, default is .15
//prev = previous, abs = absolute value
//pow = power, index = current bar number
//std = standard deviation
fastest = 0.667; slowest = 0.0645; prevP = price[index-1]; diff = abs(price - prevP); priorP = price[index-period]; signal = abs(price - priorP); noise = sum(period, DIFF); ratio = signal / noise; sm = pow(ratio * (fastest - slowest) + slowest, 2); prevAma = ifNull(price, ama[index-1]); //returns price on first try ama = prevAma + sm * (price - prevAma); amaDiff = ama - prevAma; PlotHist: MAAF = std(index, period, amaDiff) * filter;