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The Simple Moving Averages that are used are not calculated using closing price but rather each bar's midpoints. AO is generally used to affirm Moving average designed to account for market noise or volatility. KAMA will closely follow prices when the price swings are relatively small and the noise is low.McGraw-Hill, 2008. — 272 p. Chartered Market Technician Constance Brown explains the many different types of technical analysis tools and how to use them. Key topics covered include charting, moving averages, trends and cycles, oscillators, market patterns, Fibonacci ratios, price data, risk-to-reward ratios, and much more.
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