Ehler MESA Adaptive MA Technical Analysis & Ehlers MESA Trading Signals
Mesa Adaptive MAs was developed by John Ehler
Originally used to trade commodities and stocks.
MESA Adaptive average looks like two MAs. The difference is that the MESA moves in a staircase manner & not in a curved line like the MA. The example explained and illustrated below shows this indicator drawn on a trading price chart.
Ehler MESA Adaptive Moving Average
The MESA Adaptive Moving Average is a market trend following indicator that adapts to trading price action movement based on the rate of change of trading price as measured by the Hilbert Transform Discriminator. This indicator will generate a signal when the two Moving Averages cross one another. Trades should be executed in direction of the MESA averages.
This method features a fast Moving Average and a slow Moving Average so that composite average rapidly follows behind the market price changes and holds the average value until the next candle close occurs. This indicator is less prone to fake outs compared with the original Moving averages. This is because of its formula used to calculate the rate of change in relation to the price movement.
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