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Adaptive moving average calculator

An average that speeds up when price trends and slows down when it chops, with the efficiency ratio that tells the two apart.

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The closes

Oldest first, split by commas or spaces.
10 is Kaufman's own setting. The speed runs from a 2-bar to a 30-bar average.

The adaptive average

The adaptive average is 2,348.61 and rising. The 10-bar efficiency ratio is 0.70.

The efficiency
Mostly direction: price has travelled close to a straight line, so the average follows it quickly. Over the last 10 bars price went 75.80 net for every 108.40 it travelled.
The average
It moved up 14.38 on the last bar. The last close, 2,395.20, is above it.
How it is read
Many traders use a flat line as a sign to stand aside and a line that starts to slope as the start of a move. It speeds up in a clean trend and slows down in a choppy range.
Read it with care
It still lags: it turns after price does. A single big bar can lift the ratio for 10 bars.

The ratio and the adaptive average on the last bars. The last bar is marked.

BarCloseRatioAverage
7 ago2,349.700.372,302.02
6 ago2,356.200.492,308.96
5 ago2,344.800.412,312.47
4 ago2,362.500.432,317.73
3 ago2,374.900.432,323.60
2 ago2,381.300.412,329.24
1 ago2,376.400.432,334.23
Last2,395.200.702,348.61

Education only, not investment advice. The answer comes from the numbers you typed in, not from your account or the market. Simulated results are hypothetical and have limits: real trading has slippage, gaps, changing results and emotions. Trading leveraged products can lose money quickly, including all of it. Risk warning

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Educational only, not financial advice; trading involves risk.

Trend or noise, in one number

Perry Kaufman published this average in 1995. The efficiency ratio divides how far price got over the period by how far it travelled bar by bar. A ratio of 1 means every bar went the same way; a ratio near 0 means the moves cancelled out. The ratio sets the speed: near 1 the average acts like a 2-bar average, near 0 like a 30-bar one.

Compare it with fixed averages in the moving average calculator, check whether the market is ranging with the choppiness index, and size the trade with the position size calculator.

Not advice. Arithmetic on the closes you type; an indicator describes the past bars, not the next one.

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Baroq never holds your money and never trades for you. Educational only, not financial advice; trading involves risk.

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