Ehlers MESA Adaptive MA Technical Analysis Signals

Mesa Adaptive MAs was developed by John Ehler

Originally used to trade commodities and stocks.

The MESA Adaptive average looks like two MAs. The difference is that the MESA moves in a staircase manner and not in a curved line like the MA Moving Average. The example below shows this trading indicator plotted on a price chart.

Ehlers MESA Adaptive Moving Average Technical Analysis - Ehlers MESA Adaptive MA Indicator

Ehler MESA Adaptive Moving Average

The MESA Adaptive Moving Average is a market trend following trading indicator that adapts to price action movement based on the rate of change of price as measured by Hilbert Transform Discriminator. This indicator will generate a signal when the two Moving Averages cross one another. Trades should be executed in direction of the MESA averages.

This method features a fast Moving Average and a slow MA so that composite average rapidly follows behind the market price changes and holds the average value til the next candlestick close occurs. This indicator is less prone to fake outs compared with the original Moving averages. This is because of its formula used to calculate the rate of change in relation to the price movement.

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Ehlers MESA Adaptive MA Technical Analysis Signals