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Moving Average Adaptive

Perry Kaufman formed Moving Average Adaptive; Kaufman’s MA logic is a MA created to consider market volatility. Moving Average Adaptive will carefully observe prices when the price fluctuations are comparatively inadequate and low volatility. At the same time, it will also adapt when the price fluctuations stretch and follow rates from a more excellent range. This trend-following indicator can be applied to recognize the overall trend, time turning points, and filter price tendencies.

There are various measures needed to calculate Moving Average Adaptive. Let’s begin with the settings suggested by Kaufman:

  • Ten is the number of periods for the Efficiency Ratio (ER).
  • Two is the number of periods for the most active EMA constant.
  • Thirty is the number of periods for the most passive EMA constant.

Like other MAs that crypto traders utilize, buy and sell flags are produced through bullish and bearish crossovers. A bullish crossover occurs if the active MA intersects the gradual one upwards, which would begin a trading position. Bearish crossovers are contrary and will close a trade position or initiate a short. When all is set and done, MAA is a helpful trading tool for a crypto trader.

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