Dynamic formulas

["Walter Lake" <wlake@xxxxxxxxx>]

Hi again

I have questions about Kaufman's Adaptive Moving Average which is another
form of "variable" or "dynamic" formula. I think that it may be more helpful
in programing the Dynamic Breakout System than a VIDYA calculated with
standard deviation.

Periods:=Input("Time Periods",1,1000,10);  {10 is the lookback period}

Direction:=CLOSE-Ref(CLOSE,-periods);  {I don't understand how this part is
used}

Volatility:=Sum(Abs(CLOSE,1,$)),periods);

ER:=Abs(Direction/Volatility);  {ER = Efficiency Ratio ??}

FastSC:=2/(2+1)  {2 = 2 EMA which is the fastest MA in the variable average}
                                {basic formula is 2/(n+1) ??}

SlowSC:=2/(30+1)  {30 = 30 EMA is the slowest MA in the variable average}

SSC:=ER*(FastSC - SlowSC)+SlowSC;  {? what does SSC stand for}

Constant:=Pwr(SSC,2);  {constant or c = SSC squared??)

AMA:=If
(Cum(1)=periods+1,Ref(CLOSE,-1)+constant*(CLOSE-Ref(CLOSE,-1)),PREV+constant
*(CLOSE-PREV));

Any help breaking down this formula further would be appreciated.

Thanks

Walter Lake