Normalized KAMA Oscillator | Ikke Omar

This indicator demonstrates the creation of a normalized KAMA (Kaufman Adaptive Moving Average) oscillator with a table display. I will explain how the code works, providing a step-by-step breakdown. This is personally made by me:)

Input Parameters:
fast_period and slow_period: Define the periods for calculating the KAMA.
er_period: Specifies the period for calculating the Efficiency Ratio.
norm_period: Determines the lookback period for normalizing the oscillator.

Efficiency Ratio (ER) Calculation:
Measures the efficiency of price changes over a specified period.
Calculated as the ratio of the absolute price change to the total price volatility.

Smoothing Constant Calculation:
Determines the smoothing constant (sc) based on the Efficiency Ratio (ER) and the fast and slow periods.
The formula accounts for the different periods to calculate an appropriate smoothing factor.

KAMA Calculation:
Uses the Exponential Moving Average (EMA) and the smoothing constant to compute the KAMA.
Combines the fast EMA and the adjusted price change to adapt to market conditions.

Oscillator Normalization:
Normalizes the oscillator values to a range between -0.5 and 0.5 for better visualization and comparison.
Determines the highest and lowest values of the KAMA within the specified normalization period.
Transforms the KAMA values into a normalized range.

By incorporating the Efficiency Ratio, smoothing constant, and normalization techniques, the indicator actually allows for the identification of trends on different timeframes, even in extreme market conditions.
The normalization makes it much more adaptive than if you were to just use a normal KAMA line. This way you actually get a lot more data by looking at the histogram, rather than just the KAMA line.
I essentially made the KAMA into an oscillator! Please ask if you want me to code another indicator

I hope you enjoyed this.
Please ask if you have any questions<3

Versionsinformation:

Updated color theme

Versionsinformation:

Added the possibility to turn off normalization which removes the oscillating component:

Versionsinformation:

Added the possibility to turn off normalization which removes the oscillating component: