Ehlers Mother of All Moving Averages - MOAMA - StrategyQuant (2024)
Original Source of MT4 : https://fxstill.com/indikators/the-mother-of-adaptive-moving-averages
The Mother of Adaptive Moving Average (MAMA) adapts to price movement in an entirely new and unique way. The adaptation is based on the rate change of phase as measured by the Ehlers Hilbert Transform. The advantage of this method of adaptation is that it features a fast attack average and a slow decay average so that the composite average rapidly ratchets behind price changes and holds the average value until the next ratchet occurs.
The indicator has two parameters:
Fast Limit ( Alpha )
Slow Limit (Beta )
The suggested maximum value is FastLimit = 0.5 and the suggested minimum is SlowLimit = 0.05. The variable alpha is computed as the FastLimit divided by the phase rate of change. Any time there is a negative phase rate of change the value of alpha is set to the FastLimit because the phase rate of change can be no less than 1. If the phase rate of change is large, the variable alpha is bounced.
The Mother of Adaptive Moving Average (MAMA) adapts to price movement in an entirely new and unique way. The adaptation is based on the rate change of phase as measured by the Ehlers Hilbert Transform.
Developed by John F. Ehlers in 2001, the MAMA is based on the concept of the Maximum Entropy Spectral Analysis (MESA) of market data. The MAMA is a unique moving average that adjusts its speed based on market volatility, making it a more responsive and accurate indicator compared to traditional moving averages.
The Adaptive Moving Average (AMA) is a moving average that changes its sensitivity to price moves depending on the calculated volatility. It becomes more sensitive during periods when the price is moving smoothly in a certain direction and becomes less sensitive when the price is volatile.
Developed by John Ehlers, the MESA Adaptive Moving Average is a technical trend-following indicator which, according to its creator, adapts to price movement “based on the rate change of phase as measured by the Hilbert Transform Discriminator”.
50 period: The 50 moving average is the standard swing-trading moving average and is very popular. Most traders use it to ride trends because it's the ideal compromise between too short and too long term.
John Ehlers proposed a trading system based on the Instantaneous Trendline, suggesting going long when it crosses a repeat of itself with a lag and going short when it crosses below. The article includes backtesting results for both the ES-mini futures contract and SPY ETF using daily bars, revealing poor performance.
The relative strength index is among the most popular technical indicators for identifying overbought or oversold stocks. The RSI is bound between 0 and 100. Traditionally, a reading above 70 indicates overbought ad below 30 oversold.
Parabolic SAR is ideal for trading trending markets. When combined with the ATR, traders are able to set definitive stop loss and take profit price points that will ensure they take full advantage of a trending market with minimal risk exposure as possible.
Chartists interested in medium-term trends would opt for longer moving averages that might extend 20-60 periods. Long-term investors will prefer moving averages with 100 or more periods. Some moving average lengths are more popular than others. The 200-day moving average is perhaps the most popular.
The Ehler's Distant Coefficient Filter is a non-linear filter that filters out non-stationary data. The filter can be considered a technique of finding weighted average of the median price data: its calculation mechanism assigns weights to the bars according to the median prices and recent price changes.
1.Calculate the moving average. The formula is: ...
Subtract the moving average from each of the individual data points used in the moving average calculation. This gives you a list of deviations from the average. ...
Take the square root of d. This gives you the standard deviation.
A 7-day moving average is a short-term trend indicator. To calculate the 7-day moving average, you are only required to add the last 7 trading days' closing price of the stock and then divide it by 7. It will give you the 7-day moving average of the stock. Place the average on the price graph.
Introduction: My name is Tish Haag, I am a excited, delightful, curious, beautiful, agreeable, enchanting, fancy person who loves writing and wants to share my knowledge and understanding with you.
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