What Is The Fractal Adaptive Moving Average & How To Trade With It

Fractal Adaptive Moving Averages

The Fractal Adaptive Moving Average or better known as FRAMA, is a technical indicator developed by John Ehlers. The indicator is based on the algorithm that utilizes EMA (exponential moving average) and prevailing price fractals. What is the Fractal Adaptive Moving Average? According to John Ehlers, that market prices are fractal. Fractals are intricate patterns that create continuous shapes. Fractal shapes are almost similar. This means they have similar characteristics. This definition is based on a mathematical principle. John Ehlers stated that if a certain pattern is removed from charts like a 5-minute or a daily chart, a trader may …READ MORE