I have always been fascinated by the thought of adaptive indicators. It is probably because the thought of an indicator that can automatically adapt to the changing characteristics of the markets seems like it would be the Holy Grail of indicators, but it isn't. There is no Holy Grail indicator, but the adaptive quality still fascinates me. Although adaptive indicators can depend on complicated algos, I think the simplicity of the indicators is what appeals to me. The thought of not having to pick the ideal settings or any settings at all. It seems like an adaptive indicator would be more robust, but that isn't always the case.
I think I will begin a series of posts to explore adaptive indicators. There are a number of ways to adapt an indicator to the current market behavior. I certainly don't know all of them, but I do know of a few ways. I will post a few indicators presenting the methods for adaptation. The indicators may or may not be useful for your trading style, but it is important to understand the philosophy behind the indicators.
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