Introduction to the Fractal Adaptive Moving Average Indicator
The Fractal Adaptive Moving Average Indicator (FRAMA) is a modified version of the original John Ehler’s indicator. You can consider that gauge as an alternative indicator to the default fractals that are included with the MT4 installation.
The Fractal Adaptive Moving Average Indicator fits all kinds of timeframes and currency pairs. It is displayed directly on the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
Closer look on the Fractal Adaptive Moving Average Indicator
The calculations behind the Fractal Adaptive Moving Average Indicator are based on the algorithm of the Exponential Moving Average, in which the smoothing factor is considered on the current fractal dimension of the price series. The Fractal Adaptive Moving Average has an edge in the possibility to follow strong trend movements. On the other hand, it sufficiently slows down at the moments of price consolidation and sideways markets.
When you load up the indicator in your MT4 trading platform, you will get chart similar to this:
This is the settings window, with the customizable inputs:
Trading rules the Fractal Adaptive Moving Average indicator
These are the simplified trading rules the Fractal Adaptive Moving Average indicator:
- Go long when the red line crosses above the blue line – to the upside.
- Go long when the red line crosses below the blue line – to the downside.
Buy trade example
Take a look at the example of long trade:
Sell trade example
Take a look at the example of short trade:
How to set up the Fractal Adaptive Moving Average indicator in MetaTrader (MT4)?
Download the Fractal Adaptive Moving Average.rar archive at the bottom of this post, unpack it, then copy and paste the Fractal Adaptive Moving Average.ex4 or Fractal Adaptive Moving Average.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
Summary Of That Forex Indicator
The Fractal Adaptive Moving Average indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it. Don’t forget that we still have more great free forex MT4 indicators to download and try.
Download Free Forex MT4 Fractal Adaptive Moving Average Indicator
To download the Fractal Adaptive Moving Average Indicator for Metatrader 4 (MT4) for free just click the button below: