Ehlers MESA Adaptive MA Moving Average 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 Moving Averages. The difference is that the MESA moves in a staircase manner and not in a curved line such as and like the MA Moving Average. The illustration put on display below shows this trading indicator plotted on a price chart.

Ehlers MESA Adaptive Moving Average Technical Analysis - Ehlers MESA Adaptive MA Moving Average 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 rated by Hilbert Transform Discriminator. This indicator will generate a signal when the two MAs 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 as composite average quickly follows behind the price changes and holds the average value til the next candle close occurs. This indicator is less prone to fake outs compared and analyzed with original Moving averages. This is because of the formula used to calculate the rate of change relative to the price movement.

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Ehlers MESA Adaptive MA Moving Average Technical Analysis Signals