stelaraX - KAMAstelaraX – KAMA
stelaraX – Kaufman Adaptive Moving Average (KAMA) is an adaptive trend indicator designed to automatically adjust its responsiveness based on market efficiency. It smooths heavily in noisy, sideways markets and reacts faster in clean trending phases, helping traders reduce whipsaws while staying responsive when momentum increases.
This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
stelarax.com
Core logic
KAMA is built around an Efficiency Ratio (ER) that measures how “direct” price movement is over a defined period. This ER is then used to dynamically adjust the smoothing constant, creating an adaptive moving average.
Key principles:
* efficiency ratio compares net change to total volatility over the lookback period
* high ER indicates efficient trending movement, low ER indicates choppy movement
* fast and slow EMA settings define the adaptive responsiveness bounds
* smoothing constant is dynamically adjusted and squared for stability
* KAMA updates recursively, adapting continuously to market conditions
* trend switches are flagged when KAMA slope flips direction
The script generates bullish and bearish switch signals when KAMA transitions from falling to rising, or from rising to falling.
Visualization
The script plots:
* the KAMA line directly on the price chart
* dynamic line coloring based on KAMA slope (bullish, bearish, neutral)
* small triangle markers on detected trend switches
* alert conditions for bullish and bearish KAMA switch events
This creates a clean adaptive trend line with clear transition markers.
Use case
This indicator is intended for:
* identifying trend direction with adaptive smoothing
* reducing whipsaws in sideways markets
* detecting early trend transitions via slope switches
* acting as dynamic support and resistance
* filtering entries for trend-following strategies
It integrates well with price action, structure concepts, and AI-assisted chart evaluation, especially when market regimes shift frequently.
Disclaimer
This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.
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