OPEN-SOURCE SCRIPT

Adaptive Moving Average

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Adaptive Moving Average

The Adaptive Moving Average (AMA) dynamically adjusts to market conditions, selecting the most responsive behavior while filtering noise to provide clearer trend guidance.

🚀 Why It’s Unique

• Exclusive adaptive logic unique to this script
• High speed with reduced noise
• Strong performance on volatile assets such as SOLUSD and CROUSD
• Highly customizable moving average combinations
• Multi-layer processing for improved accuracy
• Color-changing plots and reversal highlights for quick interpretation

💡 Core Idea

The indicator blends multiple user-selected moving averages and dynamically emphasizes the one best suited to current market conditions. This preserves responsiveness during strong moves while filtering weak or noisy signals.

⚙️ How It Works

Three user-selected moving averages are calculated using the same base length.

A first adaptation layer weights the averages based on their rate of change responsiveness.

A second rate-of-change filter measures market conditions to suppress signals during unstable environments.

The final adaptive average changes behavior depending on market speed and direction.

The result is a moving average that reacts quickly during trends while remaining stable during choppy periods.

📌 Usage Notes

• Color changes indicate shifts in trend direction.
• Highlighted diamonds mark reversal events.
• Higher adaptation thresholds reduce signals but increase reliability.
• Lower thresholds increase responsiveness for faster trading styles.

🧭 Conclusion

The Adaptive Moving Average continuously adjusts its behavior to reduce false signals while maintaining speed and responsiveness. It offers a versatile tool for traders seeking clearer market structure and improved strategy execution.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.