The cTrader FRAMA (Fractal Adaptive Moving Average) Indicator. A nonlinear moving average is derived using the Hurst exponent. The FRAMA takes advantage of the fact that markets are fractal and dynamically adjusts the lookback period based on this fractal geometry. The actual calculation is very elaborate and complicated. The FRAMA is often used in combination with other signals and analysis techniques.
The FRAMA indicator averages the distinctions of the Highest Highs and Lowest Lows over fluctuating segments of the Length of the Time Frame. The figures obtained are mathematically manoeuvred utilizing the Boolean enquiries, Euler’s figure, familiar logarithms, and, forthwith some pointer from the prior Fractal Adaptive Moving Average, the most current Fractal Adaptive Moving Average is carved.
Who Is John Ehler?
John is an Electrical Engineer, receiving his BSEE and MSEE from the University of Missouri and did his doctoral work at The George Washington University, specializing in Fields & Waves and Information Theory. He has retired as a Senior Engineering Fellow from Raytheon. He has been a private trader since 1976.
Browse His Trading Books at Amazon
The time frame length of the Fractal Adaptive Moving Average, as well as the cost type, can be adjusted to show the trader’s desire. The major concept behind the FRAMA is to take into suggestion just very important price adjustments. If the price moves in a particular direction extremely, the FRAMA indicator is able to pursue price very firmly.
If price encounters itself range destined and does not make any important move, the FRAMA stays level. The FRAMA fundamental divides the activity chart into smaller groups and then examine in contrast these groups one after the other. These demonstrate the activity chart is a collection of the bunch of squares i.e. smaller and even larger ones.
The FRAMA is astoundingly effective as both a Fast and a Slow moving average and will outperform any SMA or EMA.
This indicator was converted for use with the cTrader trading platform.
How To Trade Using These Indicators
Download this PDF document which explains how you can trade effectively using these indicators. Please note that the document is for educational purposes and is not an instruction manual for the indicator.
Find out more about trading Frama
How To Install The Indicator
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install onto the platform.
* Manual trading only - source code not available.