Ehler MESA Adaptive MA Analysis and Ehler MESA Signals

Mesa Adaptive MAs was developed by John Ehler

Originally used to trade commodities and stocks.

MESA Adaptive average looks like two Moving Averages. The difference is the MESA heads in a staircase manner and not in a curved line such as the MA Moving Average. The example shown below shows this technical indicator drawn on a price chart.

Ehler MESA Adaptive Moving Average

The MESA Adaptive MA is a price trend following indicator that adapts to price action movement based on the rate of change of price as gauged by the Hilbert Transform Discriminator. This indicator will generate a signal when the two MAs cross one another. Trade Positions should be executed on the direction of the MESA averages.

This technique features a fast MA(Moving Average) and a slow MA(Moving Average) so that as composite average rapidly follows behind the price changes and holds the average value until the next candle close occurs. This technical indicator is less prone to fake out whipsaws compared & analyzed with the original Moving averages. This is because of the formula which is used in calculating the rate of change in relation to the price movement.

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