MESA Adaptive Moving Average indicator is a trend-following indicator developed by John Ehlers, and unlike standard moving averages that use a fixed lookback period, MAMA adapts in real time by analysing price cycles through Ehlers' Maximum Entropy Spectrum Analysis. This advanced method allows the indicator to respond more quickly to shifts in market conditions, making it especially useful for identifying trend changes and improving entry and exit timing.

The MAMA indicator is made up of two lines, the main MAMA line and the FAMA (Following Adaptive Moving Average) line. Unlike static averages, this adaptive approach helps cut through noise during sideways markets while staying responsive when prices move sharply.

Traders using platforms like cTrader benefit from MAMA’s dynamic nature, especially when precision and timely signal detection are key for both trend and countertrend trading strategies.

Ehlers MESA Adaptive Moving Average Formula

The formula for the Ehlers MESA Adaptive Moving Average Indicator involves several steps, using both price data and phase calculations derived from digital signal processing techniques. Here is a simplified version of the core logic behind it, based on John Ehlers' original work:

// Step 1: Calculate the Typical Price
price = (high + low) / 2

// Step 2: Determine the phase (using Hilbert Transform methods - simplified here)
deltaPhase = rate of phase change (from Hilbert Transform)
alpha = fastLimit / deltaPhase (bounded by slowLimit)

// Step 3: Calculate MAMA and FAMA
MAMA = alpha * price + (1 - alpha) * previous_MAMA
FAMA = 0.5 * alpha * MAMA + (1 - 0.5 * alpha) * previous_FAMA

Notes:

• fastLimit is typically 0.5
• slowLimit is typically 0.05
• MAMA adapts faster in trending markets and slows down in sideways markets

Key Concepts:

• MAMA adapts to the dominant market cycle

• FAMA lags behind MAMA, forming a signal line

• Crossovers between MAMA and FAMA are used as trading signals

This formula is non-linear and not based on fixed periods, making it different from traditional moving averages. It's often implemented using DSP techniques, so most traders use it via pre-built indicators on platforms like cTrader or MetaTrader rather than coding it from scratch.

How To Install & Remove

First, ensure that you have the cTrader trading platform installed. Then, unzip the file and double-click it to install the platform automatically.

• How to install
• How to open
• How to remove
• How to edit settings

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