The Adaptive Moving Average (AMA) aka Kaufman Adaptive Moving Average (KAMA) was created by Perry Kaufman and first presented in his book Smarter Trading (1995). This moving average offered a significant advantage over previous attempts at ‘intelligent’ averages because it allowed the user greater control. The Variable Moving Average – VMA (1992) for instance offered ...…
The Variable Moving Average (VMA) aka Volatility Index Dynamic Average (VIDYA) was developed by Tushar S. Chande and first presented in the March 1992 edition of Technical Analysis of Stocks & Commodities – Adapting Moving Averages To Market Volatility Chande’s theory was that the performance of an exponential moving average could be improved by using ...…
The Relative Volatility Index was created by Donald Dorsey and first presented in the June 1993 issue of Technical Analysis of Stocks and Commodities – The Relative Volatility Index. He noticed that most technical analysts look for confirmation from several indicators before initiating a trade in order to reduce the occurrence of false signals. This ...…
The Fractal Dimension “D” is a measure of how completely a Fractal appears to fill space as one zooms down to finer and finer scales. So what is a fractal? It is a rough or fragmented shape that can be split into parts, each of which is at least similar to a reduced size copy ...…
The Vertical Horizontal Filter (VHF) was first presented by Adam White in an article published in the August, 1991 issue of Futures Magazine – Tuning into trendiness with VHF indicator. Trend following indicators work best in a trending market while in a range bound market, mean reversion strategies tend to excel. The Vertical Horizontal Filter ...…
The Standard Deviation Ratio (SDR) was first presented as a technical indicator in the March 1992 edition of Technical Analysis of Stocks & Commodities magazine ‘Adapting Moving Averages To Market Volatility‘. The author Tushar S. Chande, Ph.D. used it as the Volatility Index in the original version of his Volatility Index Dynamic Average (VIDYA) or ...…
The Efficiency Ratio (ER) was first presented by Perry Kaufman in his 1995 book ‘Smarter Trading‘. It is calculated by dividing the price change over a period by the absolute sum of the price movements that occurred to achieve that change. The resulting ratio ranges between 0 and 1 with higher values representing a more ...…
Standard Deviation (SD) reveals how much a data set varies from its mean; a high Standard Deviation indicates that the data is widely spread. With stock prices it can be used as a measure of the historical volatility to reveal the theoretical probability of a price change over a specified period. This information can be ...…
The Double and Triple Exponential Moving Average were created by Patrick Mulloy and first published in the February 1994 issue of Technical Analysis of Stocks & Commodities magazine – Smoothing Data With Less Lag. Mulloy stated in his article: . “Moving averages have a detrimental lag time that increases as the moving average length increases. ...…
The Triangular Simple Moving Average (TriS-MA) is almost identical to the Triangular Weighted Moving Average but is very different in how it is calculated. Instead of weighting the data points directly it is a double smoothed simple moving average (a moving average of a moving average). Because most of the weight ends up being placed ...…
