KAMA Strategy: Kaufman's Adaptive Moving Average for Trend Trading
KAMA is an adaptive trend-following indicator created by analyst Perry Kaufman. Unlike standard moving averages that drag along at a fixed speed, KAMA adjusts its sensitivity based on current market volatility. It accelerates during strong trends and decelerates when price drifts sideways. I first tested KAMA on Apple's daily chart in early 2024 and was impressed with how it handled that range-bound January session, while a standard 50-day SMA kept whipsawing me. If you're comparing adaptive tools, the Uptrick indicator shows how responsiveness varies across different strategies.




