FRAMA macd 2 AM

Technically, the indicator represents the difference between two fractal adaptive moving averages.

Fractal Adaptive Moving Average (FRAMA) is a smart adaptive moving average developed by John Ehlers.

FRAMA takes price changes into account and closely follows the price level, remaining straight during price fluctuations.

FRAMA takes advantage of the fact that markets are fractal and dynamically adjusts the lookback period based on this fractal geometry.

The indicator has the ability to send notifications to the terminal and email.

Recommendations for use:

• 1. A trivial but important recommendation is to take into account the trend of a higher time period. The trend is determined based on the data of the same indicator opened on a higher period of the chart. Open trades only in the direction of the trend. Countertrend signals can only be used to close a position or set protective stop orders.
• 2. It is recommended to open a position only after confirmation of the signal given by the indicator. Confirmation is when the price overcomes the maximum (for buying) or minimum (for selling) of the bar on which the signal was given. Thus, it is rational to open trades by setting pending orders one point higher (taking into account the spread) or one point below the bar at which the signal was given.
• 3. Support/resistance points can be used both for setting protective stop orders and for deferred opposite orders.

• 4. Control of an open position can be carried out according to the data of the same indicator opened on a lower period of the chart.

Customizable parameters:

• Period - period of data used to calculate the indicator;
• Price - price used to calculate the indicator;
• Main_multiplier - adaptive factor for the main line of the indicator;
• Signal_multiplier - adaptive factor for the indicator signal line.