Ehler MESA Adaptive Moving Average Commodity Trading Technical Analysis & Ehlers MESA Trading Signals

Mesa Adaptive Moving Averages was created by John Ehlers

The MESA Adaptive average looks like two moving averages. The difference is that the MESA moves in a staircase manner and not in a curved line like the MA. The example shown below shows this indicator drawn on a commodity price chart.

Ehlers MESA Adaptive MA

The MESA Adaptive Moving Average is a commodity trend following indicator that adapts to commodity price action movement based on the rate of change of commodity price as measured by the Hilbert Transform Discriminator. This commodity technical indicator will generate a trade signal when the two MAs cross one another. Trades should be executed in the 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 commodity price changes and holds the average value until the next candlestick close occurs. This commodity technical indicator is less prone to whipsaws compared with the original Moving averages. This is because of its formula used to calculate the rate of change in relation to the commodity price movement.