Adaptive Efficiency Ratio EMA - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources

The efficiency ratio was invented by Perry Kaufman as a measure of volatility and a way to make certain calculations adaptable. In his Adaptive Moving Average he uses 3 periods for calculation which makes it a bit "mysterious" and not that simple to use anyway. This version simplifies the entire process and is not intended to clone the KAMA indicator - instead it is intended to use the efficiency ratio to adjust the average calculation and use only two parameters:

No other parameters are required

It can be used as any other moving average type indicator

This type of adjustment tends to produce a smoother slope than the EMA. Interestingly, the response to high volatility is very fast and the results produced afterwards remain smooth. In the example below, the colored line is this line and the gray line is the "classic" EMA using the same price and period

Attachment download

📎 adaptive_er_ema.mq5 (9.19 KB)

Source: MQL5 #23857