Ehler MESA Adaptive MA Technical Analysis and Ehler MESA Signals

Mesa Adaptive Moving Averages was created by John Ehler

Originally used to trade commodities and stocks.

MESA Adaptive average looks like 2 Moving Averages. The difference is the MESA heads in a staircase manner and not in a curved line like the MA. The illustration explained & illustrated below shows this technical indicator drawn on a price chart.

Mesa Adaptive MAs Moving Averages - Ehler MESA Adaptive MA(Moving Average) Technical Analysis

Ehler MESA Adaptive Moving Average

The MESA Adaptive Moving Average is a market trend following indicator that adapts to 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 2 Moving Averages cross one another. Trade Positions should be executed on the direction of the MESA averages.

This method/technique features a fast Moving Average and a slow Moving Average so that composite average quickly follows behind the price changes and holds the average value until the next candle close occurs. This indicator is less prone to fake outs compared and analyzed with the original Moving averages. This is due to the formula which is used to calculate the rate of change relative to the price movement.

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Ehler MESA Adaptive MA Technical Analysis and Ehler MESA Signals