Ehler MESA Adaptive Moving Average Trading Analysis and Ehlers MESA Trading Signals

Mesa Adaptive Moving Averages was developed by John Ehler

Originally used to trade commodities and stocks.

MESA Adaptive average resembles two moving averages. The difference is the MESA heads in a staircase manner and not in a curved line like the MA(Moving Average). The example shown & described below displays this indicator drawn on a price chart.

Ehlers MESA Adaptive Moving Average Analysis - Ehler MESA Adaptive Moving Average Indicator

Ehler MESA Adaptive MA

The MESA Adaptive Moving Average is a market trend following indicator which adapts to the price action movement based on rate of change of price as measured by Hilbert Transform Discriminator. This indicator will generate a trade signal when the two MAs cross one another. Trades should be opened in the direction of the MESA averages.

This method/technique features a fast MA(Moving Average) & a slow MA(Moving Average) so that as composite average rapidly and quickly follows behind the price changes & holds the average value until the next candlestick close occurs. This indicator is less prone to whipsaw fakeouts compared with original Moving averages. This is due to its formula that is used to calculate the rate of change relative to the price movement.

Study More Lessons:

Trade Gold Trading

Ehler MESA Adaptive Moving Average Trading Analysis and Ehlers MESA Trading Signals