Fractal Adaptive Moving Average Indicator
Platform: MT4 Type: Trend Last update: September 22, 2024The 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.
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:
