Fractal Adaptive Moving Average (FRAMA) Forex Indicator
The Fractal Adaptive Moving Average (FRAMA) indicator for MetaTrader4 that was created by John F Ehlers.
The indicator takes advantage of the fractal nature of the financial markets.
A fractal shape can be fragmented or rough and can be divided into segments, each of the segment can be seen to be somewhat similar to a condensed size replica of the original.
The FRAMA indicator averages the differences of the highest highs and lowest lows over varying segments of the length of the period.
The values obtained are mathematically manipulated using the Boolean questions, Euler’s number, natural logarithms, and, along with some pointer from the previous Fractal Adaptive Moving Average, the most recent Fractal Adaptive Moving Average is shaped.
The period length of the Fractal Adaptive Moving Average as well as the price type can be tweaked to reflect the trader’s preference.
The main idea behind the FRAMA is to take into thought just very crucial price changes. If price heads in a particular direction significantly, the FRAMA indicator is able to follow price very tightly.
If price finds itself range bound and doesn’t makes any crucial move, the FRAMA stays flat. The FRAMA essential divides the activity chart smaller groups and then compares these groups one after the other.
This means the activity chart is a cluster of a lot of squares i.e. smaller and larger ones.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (PeriodFRAMA, Price Type), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month