FRAMA


FRAMA (FRactal Adaptive Moving Average). A nonlinear moving average is derived using the Hurst exponent.

The Fractal Adaptive Moving Average aka FRAMA is a particularly clever indicator. It uses the Fractal Dimension of stock prices to dynamically adjust its smoothing period. In this post we will reveal how the FRAMA performs and if it is worthy of being included in your trading arsenal.

The FRAMA indicator averages the distinctions of the Highest Highs and Lowest Lows over fluctuating segments of the Length of the Time Frame.

The figures obtained are mathematically maneuvered utilizing the Boolean enquiries, Euler’s figure, familiar logarithms, and, forth with some pointer from the prior Fractal Adaptive Moving Average, the most current Fractal Adaptive Moving Average is carved.

The time frame length of the Fractal Adaptive Moving Average as well as the cost type can be adjusted to show the trader’s desire. The major concept behind the FRAMA is to take into suggestion just very important price adjustments. If price moves in a particular direction extremely, the FRAMA indicator is able to pursue price very firmly.

If price encounters itself range destined and does not makes any important move, the FRAMA stays level. The FRAMA fundamental divides the activity chart into smaller groups and then examine in contrast these groups one after the other. These demonstrate the activity chart is a collection of bunch of squares i.e. smaller and even larger ones.

The FRAMA is astoundingly effective as both a Fast and a Slow moving average and will outperform any SMA or EMA.