KAMA Trend Script

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-- SPDX-License-Identifier: MIT
-- IQOptionWiki QCS Library
-- IQOW KAMA Trend v1.0.0
--
-- Kaufman's Adaptive Moving Average (KAMA) speeds up when price moves in a
-- clear direction and slows down in noise. A close crossing the KAMA while
-- the KAMA itself slopes the same way marks a possible change of direction.
-- KAMA uses the same formula as the official IQ Option indicator.
--
-- HIGHER: the close crosses above KAMA(10, 2, 30) while KAMA is rising.
-- LOWER:  the close crosses below KAMA(10, 2, 30) while KAMA is falling.
--
-- Markers use the previous completed candle: they appear after the next candle
-- opens and are shifted back one bar onto the candle that qualified.
-- Educational chart tool only. It does not place trades, choose an expiry,
-- predict outcomes, or guarantee results. Test on a Practice balance first.

instrument {
    name = "IQOW KAMA Trend",
    short_name = "IQOW KAMA",
    overlay = true
}

input_group {
    "1. KAMA settings",
    kama_period = input (10, "Efficiency period", input.integer, 2, 200),
    fast_period = input (2, "Fast period", input.integer, 1, 100),
    slow_period = input (30, "Slow period", input.integer, 2, 250)
}

input_group {
    "Display and advice",
    lines_visible = input { default = true, type = input.plot_visibility },
    signals_visible = input { default = true, type = input.plot_visibility },
    advice_enabled = input { default = false, name = "Enable platform advice", type = input.boolean }
}

input_group {
    "Colors",
    kama_color = input { default = "#57A1D0", type = input.color },
    line_width = input { default = 2, type = input.line_width },
    higher_color = input { default = "#25E154", type = input.color },
    lower_color = input { default = "#FF6C58", type = input.color },
    signal_text_color = input { default = "#FFFFFF", type = input.color }
}

-- Efficiency ratio: net move divided by the sum of single-bar moves. The net
-- move spans period - 1 bars, exactly as in the official Quadcode KAMA, so the
-- line matches the native indicator.
net_change = abs (close - close [kama_period - 1])
path_length = sum (abs (close - close [1]), kama_period)
efficiency_ratio = net_change / max (path_length, 1e-10)

-- Smoothing constant blends the fast and slow EMA constants, then is squared.
local fast_constant = 2 / (fast_period + 1)
local slow_constant = 2 / (slow_period + 1)
smoothing = (efficiency_ratio * (fast_constant - slow_constant) + slow_constant) ^ 2

kama_line = smoothing * close + (1 - smoothing) * nz (kama_line [1], close)

-- Current-bar scalars for the Lua rule logic.
local close_now = get_value (close, nil)
local close_before = get_value (close [1], nil)
local kama_now = get_value (kama_line, nil)
local kama_before = get_value (kama_line [1], nil)

local periods_are_valid = fast_period < slow_period

local data_is_ready =
    periods_are_valid and
    close_now ~= nil and
    close_before ~= nil and
    kama_now ~= nil and
    kama_before ~= nil and
    get_value (net_change, nil) ~= nil and
    get_value (path_length, nil) ~= nil

-- Event: close crosses the KAMA on this candle while KAMA slopes the same way.
higher_setup = conditional (
    data_is_ready and close_before <= kama_before and close_now > kama_now and kama_now > kama_before
)
lower_setup = conditional (
    data_is_ready and close_before >= kama_before and close_now < kama_now and kama_now < kama_before
)

-- Confirm only a new setup on the previous completed candle.
confirmed_higher = conditional (
    get_value (higher_setup [1], false) and
    not get_value (higher_setup [2], false)
)

confirmed_lower = conditional (
    get_value (lower_setup [1], false) and
    not get_value (lower_setup [2], false)
)

if lines_visible then
    plot (kama_line, "KAMA", kama_color, line_width)
end

if signals_visible then
    plot_shape (
        confirmed_higher,
        "KAMA HIGHER",
        shape_style.triangleup,
        shape_size.small,
        higher_color,
        shape_location.belowbar,
        -1,
        "HIGHER",
        signal_text_color
    )

    plot_shape (
        confirmed_lower,
        "KAMA LOWER",
        shape_style.triangledown,
        shape_size.small,
        lower_color,
        shape_location.abovebar,
        -1,
        "LOWER",
        signal_text_color
    )
end

-- QCS advice is a platform notification state only; it does not place trades.
if advice_enabled and
    get_value (confirmed_higher, false) and
    not get_value (confirmed_lower, false) then
    advise (advice.buy)
elseif advice_enabled and
    get_value (confirmed_lower, false) and
    not get_value (confirmed_higher, false) then
    advise (advice.sell)
else
    advise (advice.neutral)
end