The Fractal Adaptive Moving Average FRAMA was developed by John Ehlers.
The indicator is constructed on the EMA exponential moving average algorithm, with a smoothing factor calculated on the basis of the current fractal dimension of the price.
The advantage of the indicator is the ability to track strong trend movements and market consolidation moments.
Interpretation Trading Signals And Rules:
The interpretation of the indicator is identical to the interpretation of moving averages
_ The FRAMA line is relatively "flat" in periods of horizontal range trading. It could therefore be used to avoid many false signals when it is desired to use a technique of the crossing of moving averages.
_ The FRAMA line has a greater reactivity to changes in trends than moving averages, making it possible to take a much earlier position on a breakout of the horizontal channel.
// FRAMA //p = 20 pri=Customclose len=p N3=(Highest[len](High)-Lowest[len](Low))/len mH=High L=Low For count=0 To len/2-1 If High[count] > mH Then mH=High[count] Endif If Low[count] < L Then L=Low[count] Endif Next N1=(mH-L)/(len/2) HH=High[len/2] LL=Low[len/2] For count=len/2 To len-1 If High[count] > HH Then HH=High[count] Endif If Low[count] < LL Then LL=Low[count] Endif Next N2=(HH-LL)/(len/2) If N1 > 0 And N2 > 0 And N3 > 0 Then Dimen=(Log(N1+N2)-Log(N3))/Log(2) Endif alpha=Exp(-4.6*(Dimen-1)) If alpha < 0.01 Then alpha=0.01 Endif If alpha > 1 Then alpha=1 Endif Filt=alpha*pri+(1-alpha)*Filt If Barindex < len+1 Then Filt=pri Endif Return Filt as "FRAMA"
original code from gigi @ http://www.aktienboard.com/forum/f29/prorealtime-cmc-script-programmierung-t94783/215#post2035965
No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.ProRealTime ITF files and other attachments :