# Anchored Powered KAMA

An anchored take on Kaufman's Adaptive Moving Average that restarts each hourly, daily, weekly, monthly, or yearly period, with a power exponent that flattens the average harder in sideways markets. Standard-deviation bands built from the KAMA itself flag period extremes, serving range traders and trend-pullback traders alike.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Feb 26, 2025.
- Access: free.
- Concepts: [KAMA](https://www.luxalgo.com/library/concept/kama/) (primary), [Anchored MA](https://www.luxalgo.com/library/concept/anchored-ma/), [Kaufman Efficiency Ratio](https://www.luxalgo.com/library/concept/kaufman-efficiency-ratio/)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn05vk000cvhsgar3u2mu9
- Page: https://www.luxalgo.com/library/indicator/anchored-powered-kama/

**Anchored Powered KAMA** rebuilds [KAMA](https://www.luxalgo.com/library/concept/kama/) around calendar anchors: the adaptive average restarts each Hourly, Daily, Weekly, Monthly, or Yearly period, a power exponent deepens its flattening in sideways tape, and standard-deviation bands computed from the KAMA itself mark the period's extremes. One glance separates trending conditions from ranging ones.

## How to Trade the Anchored Powered KAMA?

- **Flat KAMA**: a horizontal average signals a ranging market. Anticipate reversals at the outer bands rather than chasing moves.
- **Sloped KAMA**: a rising or falling average marks trend; wait for pullbacks toward the KAMA and trade in the direction of its slope.
- **Band structure**: defaults plot solid bands at 2x deviations and dashed at 1x, grading how stretched price is within the current anchor period.

Anchoring is what makes it multi-timeframe: Hourly suits charts up to 2 minutes, Daily up to 15 minutes, Weekly up to 1 hour, Monthly up to 4 hours, and Yearly beyond that, with an automated option that picks the optimal period for your chart. It follows the [anchored moving average](https://www.luxalgo.com/library/concept/anchored-ma/) principle, so every period gets its own clean read, and deviations are computed with Welford's algorithm. If auto-selection is disabled, keep the anchor aligned with the chart timeframe to avoid display errors.

## Anchored Powered KAMA Settings

- **Anchor Period**: Hourly, Daily, Weekly, Monthly, or Yearly.
- **Source**: the data series feeding the calculation.
- **Power Exponent** (default 2): 1 reproduces the original KAMA; higher values sharpen range detection.
- **Band Multiplier**: standard-deviation multiplier for the outer bands, with inner bands drawn at one less.

## Frequently Asked Questions

### What does the power exponent actually do?

It amplifies the filtering applied during sideways stretches, so the average goes quieter when price is going nowhere while still tracking directional moves. Set it to 1 for classic KAMA behavior; the default of 2 emphasizes range detection.

### How does it compare with other adaptive averages?

Both adapt their smoothing to conditions, just differently. This build drives Kaufman's efficiency logic through a power exponent and calendar anchors, while the [Trend Regularity Adaptive Moving Average](https://www.luxalgo.com/library/indicator/trend-regularity-adaptive-moving-average/) adapts on a rolling basis without anchor resets.

### Is the Anchored Powered KAMA free to use?

It is. Grab it from the LuxAlgo Library at no cost, and run it in Quant, our coding agent, directly from this page to see how anchor periods behave on your markets. You can also copy the source code from this page and run it anywhere Pine Script® runs.

## Related indicators

- [Trend Regularity Adaptive Moving Average](https://www.luxalgo.com/library/indicator/trend-regularity-adaptive-moving-average/) (TRAMA): markdown at https://www.luxalgo.com/library/indicator/trend-regularity-adaptive-moving-average.md
- [Machine Learning Moving Average](https://www.luxalgo.com/library/indicator/machine-learning-moving-average/) (Adaptive-lookback MA): markdown at https://www.luxalgo.com/library/indicator/machine-learning-moving-average.md
- [ZLEMA](https://www.luxalgo.com/library/indicator/zlema/) (Trend): markdown at https://www.luxalgo.com/library/indicator/zlema.md
- [Moving Average Converging](https://www.luxalgo.com/library/indicator/moving-average-converging/) (EMA): markdown at https://www.luxalgo.com/library/indicator/moving-average-converging.md
- [MLMA](https://www.luxalgo.com/library/indicator/mlma/) (Trend): markdown at https://www.luxalgo.com/library/indicator/mlma.md
- [Volume-adjusted MA](https://www.luxalgo.com/library/indicator/volume-adjusted-ma/) (Trend): markdown at https://www.luxalgo.com/library/indicator/volume-adjusted-ma.md
- [JMA](https://www.luxalgo.com/library/indicator/jma/) (Trend): markdown at https://www.luxalgo.com/library/indicator/jma.md
- [T3](https://www.luxalgo.com/library/indicator/t3/) (Trend): markdown at https://www.luxalgo.com/library/indicator/t3.md

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Source: https://www.luxalgo.com/library/indicator/anchored-powered-kama/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/
