Fibonacci Period KAMA Series

The Fibonacci Period KAMA Series indicator provides a multi-layered visualization of trend dynamics by plotting a series of Kaufman's Adaptive Moving Averages (KAMA) with lookback periods scaled by the Fibonacci sequence. This tool enables traders to observe trend strength and potential support/resistance zones across multiple time horizons simultaneously using an adaptive smoothing mechanism.

Usage

The Usage section describes how the script can be used to identify trend structure. The indicator plots a ribbon-like series of KAMA lines based on a user-defined base period.

• Trend Identification: When the price is trading above the KAMA series and the ribbons are colored green, a bullish trend is indicated. Conversely, price trading below a red ribbon series suggests a bearish trend.
• Support & Resistance: The various Fibonacci-scaled KAMA lines act as dynamic support and resistance levels. A cluster of these lines often indicates a strong area of price interest.
• Expansion & Contraction: The width of the ribbon (the distance between different Fibonacci periods) highlights volatility and trend acceleration.

Details

The Kaufman's Adaptive Moving Average (KAMA) is designed to account for market noise or volatility. It adjusts its smoothing constant based on an Efficiency Ratio (ER), which compares the net price change to the sum of individual absolute price changes over a period. This script expands this concept by calculating multiple KAMA instances where the lookback period is the Base Sampling Period multiplied by Fibonacci numbers (2, 3, 5, 8, 13, 21, 34, 55, 89, and 144). The result is a series of averages that adapt to volatility while providing a structured hierarchy of trend data.

Settings

• Source: Determines the price data used for the KAMA calculations (e.g., Close, HLC3).
• Base Sampling Period: The initial lookback period used to calculate the Efficiency Ratio and the foundation for all Fibonacci multiples.
• KAMA Series Smoothing Constant Fast End: Controls the smoothing factor for the fastest possible KAMA response.
• KAMA Series Smoothing Constant Slow End: Controls the smoothing factor for the slowest possible KAMA response.
• Enable/Disable Toggles: Users can individually enable or disable specific Fibonacci multiples (x2 through x144) to clean up the chart or focus on specific time horizons.

FAQ

How do I interpret the colors of the Fibonacci Period KAMA Series?

The colors are determined by the relationship between the source price and each specific KAMA line. Typically, green indicates the price is above the average, while red indicates it is below.

What is the advantage of using KAMA over a standard EMA?

KAMA is adaptive; it speeds up during strong trends and slows down during choppy, sideways markets to reduce noise and false signals.

How can I access this tool?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.