Adaptive EMA is a moving average-based indicator. It is essentially an exponential moving average (EMA) with a dynamic smoothing coefficient, which adapts to the relative position of the close price in the high-low range. The nearer the close price is to either limit, the greater weight the bar readings have.
Like other moving averages, Adaptive EMA is trend-following. Using it along with the regular EMA of the same length, may give insight into current trend direction. Using two adaptive EMAs with different lengths may give important crossover signals.
||Defines the price for which Adaptive EMA is to be calculated.|
||Defines the period on which Adaptive EMA is to be calculated.|
||Defines the period on which the high-low range is to be defined.|
||The Adaptive EMA plot.|
1. "Adaptive Exponential Moving Average" by Vitali Apirine. Technical Analysis of Stocks & Commodities, April 2019.
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.