KAUFMAN ADAPTIVE MACD Trading Guide

The Kaufman Efficiency-Adaptive MACD is a quantitative technical analysis tool. Kaufman Efficiency-Adaptive MACD (K-MACD) A premium technical indicator that combines: 1. Kaufman's Efficiency Ratio (ER): measures trend-to-noise ratio.

What does the indicator show?

• Market Structure & Momentum: Visualizes prevailing trend directions and key reversal zones.
• BUY / SELL Signals: Highlights confirmed entry and exit opportunities based on quantitative rules.
• Dynamic Boundaries: Provides adaptive levels for managing trade risk and reward expectations.

Key Settings

• ER Lookback Period (lookback): Controls the calculation period and sensitivity for market detection.
• Fast EMA Target Period (fastPeriod): Controls the calculation period and sensitivity for market detection.
• Slow EMA Target Period (slowPeriod): Controls the calculation period and sensitivity for market detection.
• Signal Period (signalPeriod): Controls the calculation period and sensitivity for market detection.
• EMA Slowest Period (slowestPeriod): Controls the calculation period and sensitivity for market detection.
• Normalization Period (normPeriod): Controls the calculation period and sensitivity for market detection.
• Source (source): Controls the calculation period and sensitivity for market detection.
• MACD Line (macdLine): Controls the calculation period and sensitivity for market detection.
• Signal Line (signalLine): Controls the calculation period and sensitivity for market detection.
• Bullish Strong (histBullStrong): Controls the calculation period and sensitivity for market detection.
• Bullish Weak (histBullWeak): Controls the calculation period and sensitivity for market detection.
• Bearish Strong (histBearStrong): Controls the calculation period and sensitivity for market detection.
• Bearish Weak (histBearWeak): Controls the calculation period and sensitivity for market detection.
• Choppy/Flat (histChoppy): Controls the calculation period and sensitivity for market detection.
• Zero Line (zeroLine): Controls the calculation period and sensitivity for market detection.
• K-MACD (kmacd): Controls the calculation period and sensitivity for market detection.
• Signal (signal): Controls the calculation period and sensitivity for market detection.
• Histogram (hist): Controls the calculation period and sensitivity for market detection.
• MACD Value (kmacd): Controls the calculation period and sensitivity for market detection.
• Signal Value (signal): Controls the calculation period and sensitivity for market detection.
• Histogram Value (hist): Controls the calculation period and sensitivity for market detection.
• Efficiency Ratio (er): Controls the calculation period and sensitivity for market detection.
• Is Efficient Trend (isEfficient): Controls the calculation period and sensitivity for market detection.
• Is Choppy Range (isChoppy): Controls the calculation period and sensitivity for market detection.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, this indicator can be used both as a direct signal source and as a market-state filter.

1. Signal Events

• isEfficient - Is Efficient Trend event signal.
• isChoppy - Is Choppy Range event signal.

2. Filters and Trade Levels

• lookback - ER Lookback Period value used for structural qualification or thresholds.
• fastPeriod - Fast EMA Target Period value used for structural qualification or thresholds.
• slowPeriod - Slow EMA Target Period value used for structural qualification or thresholds.
• signalPeriod - Signal Period value used for structural qualification or thresholds.
• slowestPeriod - EMA Slowest Period value used for structural qualification or thresholds.
• normPeriod - Normalization Period value used for structural qualification or thresholds.
• source - Source value used for structural qualification or thresholds.
• kmacd - K-MACD value used for structural qualification or thresholds.
• signal - Signal value used for structural qualification or thresholds.
• hist - Histogram value used for structural qualification or thresholds.
• kmacd - MACD Value value used for structural qualification or thresholds.
• signal - Signal Value value used for structural qualification or thresholds.
• hist - Histogram Value value used for structural qualification or thresholds.
• er - Efficiency Ratio value used for structural qualification or thresholds.

Strategy Example: Enter Long when buySignal is true and trendFilter == 1, ensuring trades align with dominant momentum.