Ehlers MESA Adaptive Moving Average XAUUSD Technical Analysis and Ehlers MESA XAUUSD Signals

Mesa Adaptive Moving Averages was developed by John Ehlers

Originally used to trade commodities and stocks.

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 xauusd price chart.

Ehlers MESA Adaptive MA

The MESA Adaptive Moving Average is a xauusd trend following indicator that adapts to gold price action movement based on the rate of change of gold price as measured by the Hilbert Transform Discriminator. This 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 MA and a slow MA so that composite average rapidly follows behind the gold price changes and holds the average value until the next candlestick close occurs. This 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 gold price movement.