I have been reading Perry Kaufman's Adaptive Moving Averages and how to program them. I came across two afls in Amibroker i.e. AMA and AMA2. I was able to relate to the fact that Kaufman's formula was defined by AMA but I could not figure out AMA2. What is the difference and is there some theory available about this.
Also, In the formula for AMA ; it starts with defining Graph0 = EMA(C,15); and then goes on to formulate the other constants. In the end, Graph0 = AMA(C,sc); My question is , does this formula have to define Graph0 at the outset? Regards
