Fractal Adaptive Moving Average Indicator MT4
Platform: MT4 Type: Trend Last update: September 13, 2025The Fractal Adaptive Moving Average (FRAMA) indicator for MT4 is a variation of moving averages, but it adapts more quickly and accurately to price fluctuations. It was originally introduced by John Ehlers as a better alternative for trend-trading strategies.
Example chart:
How to trade with the fractal adaptive moving average indicator for mt4?
The FRAMA indicator consists of two elements. Namely, red line which reacts fast to price changes and a blue line that smooths out noise and confirms longer-term trends.
When to enter a trade?
These are the simplified trading rules you should follow:
- Go long when the red line crosses above the blue line – to the upside.
- Go short when the red line crosses below the blue line – to the downside.
Take a look at this USD/JPY H4 chart. You can see how the bullish setup formed, with the crossover highlighted in a red circle providing an early entry point. This allowed traders to ride the bullish momentum as price continued higher.
Here on the another USD/JPY H4 chart, the bearish setup is clear. The crossover highlighted in red marked the start of a strong downtrend, giving traders an early short entry. Price continued to fall sharply afterward, confirming the signal and providing a profitable move.
Formula behind the FRAMA indicator
The Fractal Adaptive Moving Average uses a custom and sophisticated calculation method that dynamically adjusts its smoothing factor based on the current market conditions. For instance, traditional moving averages use fixed parameters and FRAMA adapts its responsiveness by measuring the fractal dimension of price movements.
Settings
This is the settings window, with the customizable inputs:
- RPeriod – defines the lookback period used to calculate the fractal dimension
- multiplier – controls the scaling of the adaptive smoothing factor
- signal_multiplier – sets the responsiveness of the signal line
