A moving average type indicator that incorporates cyclical analysis.
Overview
Excerpted from the article entitled “Mesa Adaptive Moving Averages” by John F. Ehlers in the Sept. 2001 edition of Technical Analysis of Stocks and Commodities magazine…
“The MESA Adaptive Moving Average (MAMA) adapts to price movement based on the rate of change of phase as measured by the Hilbert Transform Discriminator (Technical Analysis of Stocks and Commodities magazine, December 2000). This method features a fast attack average and a slow decay average so that composite average rapidly ratchets behind price changes and holds the average value until the next ratchet occurs.”
For a more detailed description of the MESA Adaptive Moving Average, please refer to the aforementioned article.
The MESA Adaptive Moving Average on the USD/CHF daily chart 4/12/2011
Source: VT Trader
