Kaufman Adaptive Moving Average in Crypto: Why the Value Changes Before Candle Close
Kaufman's Adaptive Moving Average speeds up in trends and slows in noise. On the live bar, the efficiency ratio that sets its speed is itself provisional.
Short answer
KAMA = previous KAMA + SC × (price − previous KAMA), where SC = (ER × (fast − slow) + slow)², ER (efficiency ratio) = |net change over N| ÷ sum of |bar-to-bar changes|, and fast/slow are 2/(2+1) and 2/(30+1). On the live bar both price and ER are provisional. A strong intrabar move raises ER, which raises SC, so KAMA moves faster exactly when price moves most. The adaptive speed can therefore make KAMA's live value change more than its usual quiet behaviour suggests.
Which part of KAMA uses the live bar
| Component | Uses current bar? | Effect intrabar |
|---|---|---|
| Efficiency ratio (ER) | Yes | Rises with directional moves |
| Smoothing constant SC | Yes | Squared, so sensitive |
| Price − previous KAMA | Yes | Moves with price |
Squaring SC means tripling ER can raise KAMA's step more than fivefold. That is why KAMA can look flat for hours and then lurch inside one bar.
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Rules
Worked: fast = 0.667, slow = 0.0645. ER 0.2 → (0.2 × 0.602 + 0.0645)² ≈ 0.034; ER 0.6 → (0.6 × 0.602 + 0.0645)² ≈ 0.181.
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Open the ChartsPod terminalQuestions readers ask
Why does KAMA suddenly move?
Its speed rises with the efficiency ratio, which is squared.
Is KAMA's speed provisional intrabar?
Yes.
Use closed bars?
Yes.
Sources and methodology
Indicator formulas are standard definitions; live-versus-closed behaviour follows TradingView's repainting documentation. Values in examples are illustrative.
- TradingView Pine Script: Repainting — live vs historical calculation.
- ChartsPod indicator reference — indicator calculations.
This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.
CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.