Free Forex Indicators (MT4), Trend Following Indicators
Kaufman Adaptive Moving Average
By Arun Lama
Updated On
Kaufman Adaptive Moving Average is the latest edition of Kaufman Moving Averages. It is considered as one of the best moving average indicator because of its capacity to adapt with the Forex trading charts based on price action changes. Trend based indicators are always at the top of our priority.
This moving average based indicator can be independently applied on all kind of timeframe charts and it also fits with any Forex currency pair window. It has maintained excellent track record with amazing performance in Forex trading signals.
A successful installation of Kaufman Adaptive indicator should look like this:
Kaufman Adaptive indicator works almost as other moving averages but the best point is it studies the nature of market momentum and adapts itself with the change to plot both trend and trade signals. It turns blue when price holds its positions above its level to signal the bullish trend. If market is in sideways, it moves as a horizontal line. It turns red and head towards downwards with price closing below its level are interpreted as the bearish trend.
Price closes above the Kaufman Adaptive indicator level
Kaufman Adaptive indicator turns blue
The signaling bar closes as a bullish candle
Set stop loss below the current respective swing low
Exit long whenever Kaufman Adaptive indicator turns red and price closes below its level at the same time
Kaufman Adaptive Moving Average: Sell Parameters
Price closes below the Kaufman indicator
Kaufman Adaptive indicator turns red
The signaling bar closes as a bearish candle
Set stop loss above the current respective swing high
Exit short whenever Kaufman Indicator turns blue and price closes above its level at the same time
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Arun Lama
I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.
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