The Fractal Adaptive Moving Average (FRAMA) is a forex indicator that dynamically adjusts to market conditions using fractal geometry. In this guide, we’ll explore how FRAMA works, its advantages, and the best trading strategies to use it effectively.
The Fractal Adaptive Moving Average (FRAMA) is a trend-following indicator developed by John Ehlers that adjusts its smoothing factor based on market fractal geometry. Unlike traditional moving averages that apply a fixed smoothing period, FRAMA becomes more responsive in trending markets and less reactive in ranging markets, filtering out noise and reducing lag.
FRAMA is calculated using a fractal dimension-based approach:
FRAMA helps traders identify trend direction with minimal lag:
Recommended FRAMA Settings:
Using two FRAMA lines with different periods generates trade signals:
Best FRAMA Combinations:
Pairing FRAMA with the Relative Strength Index (RSI) improves trade confirmation:
✅ Pros:
❌ Cons:
The Fractal Adaptive Moving Average (FRAMA) is a powerful, adaptive moving average that adjusts to different market conditions. By using fractal geometry, it helps traders capture trends with higher accuracy while filtering out noise.
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