Fractal Moving Average Indicator – Free MetaTrader Indicator

The Fractal Moving Average (FRAMA) is a technical indicator used in financial markets, including Forex, to analyze price movements. It combines aspects of both fractal geometry and moving averages to provide a smoother and more responsive trend-following indicator.

Here’s how it works:

  • Fractals: Fractals are geometric patterns that repeat at different scales. In trading, fractals refer to patterns in price charts where there are at least five bars, with the highest high in the middle and two lower highs on each side. Similarly, for a downward fractal, there are five bars with the lowest low in the middle and two higher lows on each side.
  • Moving Average: A moving average is a calculation used to analyze data points by creating a series of averages of different subsets of the full data set. It smoothens out price data to identify trends over a specified period.

The Fractal Moving Average Indicator combines these concepts by applying a fractal dimension to the calculation of a moving average. Here’s how it’s typically calculated:

  • Choose a length: Just like with any moving average, you need to specify the number of periods over which the average is calculated.
    Calculate Fractal Dimension: Instead of a simple average, the FRAMA uses a fractal dimension algorithm to dynamically adjust the smoothing factor based on market conditions. This adjustment aims to reduce lag while still filtering out market noise.
  • Apply the Fractal Dimension to Moving Average: The fractal dimension is then applied to the moving average calculation, resulting in a smoother moving average that is more responsive to changes in market volatility.

The benefit of the FRAMA is that it adapts to market conditions, becoming more responsive during periods of high volatility and less reactive during quieter market phases. Traders use it to identify trends and potential reversal points in the market. However, like all technical indicators, the FRAMA is not foolproof and should be used in conjunction with other forms of analysis to make trading decisions. It’s essential to backtest any indicator thoroughly and understand its strengths and weaknesses before incorporating it into a trading strategy.

We have released Fractal Moving Average Indicator for free. In fact, this indicator was built as the part of  Fractal Pattern Indicator to save some computation.

Anyway this indicator is distributed for free. Hence, every Metatrader 4 and MetaTrader 5 users can use this free Fractal Moving Average Indicator. This indicator will provide you moving average cross over and moving average cross down signals.

For free users, there are some limitation. Hence, do use it if you understand the possible limitation. Here is the landing page of Fractal Moving Average Indicator

For Fractal Pattern Indicator users, you can access to all the features of Fractal Moving Average indicator. Therefore, if you are Fractal Pattern Indicator users, then you must download this tool to connect the opportunity of turning point to momentum possibly.

Here is the landing page to our  Fractal Pattern Indicator.

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