Fractal Adaptive Moving Average (FRAMA)
Info
The Fractal Adaptive Moving Average (FRAMA) is a Indicator for MetaTrader 5 that the fractal adaptive moving average (frama) is a technical indicator that adapts to market conditions by adjusting its smoothing factor based on the fractal dimension of price series. This indicator is derived from the Exponential Moving Average (EMA) algorithm, but with a unique approach to calculating the smoothing factor.
Usage
This tool is typically used for enhancing chart analysis and decision making.
Platform
This Indicator works exclusively on MetaTrader 5 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL5/Indicators folder via File ? Open Data Folder in MetaTrader 5.
How to Install and Use Fractal Adaptive Moving Average (FRAMA)
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
What this tool does
The Fractal Adaptive Moving Average (FRAMA) is a technical indicator that adapts to market conditions by adjusting its smoothing factor based on the fractal dimension of price series.
Typical Use Case
This Indicator excels in automated trading and technical analysis on MetaTrader 5.
Compatible Platform & Setup
This Indicator works on MetaTrader 5. Place the file in the MQL5/Indicators folder and restart the terminal.
Description & Settings
Related: XANDER Adaptive Cross: Trend Identification Tool - another powerful indicator for MetaTrader 5 traders.
The Fractal Adaptive Moving Average (FRAMA) is a technical indicator that adapts to market conditions by adjusting its smoothing factor based on the fractal dimension of price series.Also recommended: Institutional Fractal Dimension Index (Regime Detector) - similar indicator with strong performance on MetaTrader 5.
This indicator is derived from the Exponential Moving Average (EMA) algorithm, but with a unique approach to calculating the smoothing factor. The smoothing factor, denoted as A(i), is determined by the current fractal dimension of the price series, D(i).
The key advantage of FRAMA is its ability to respond to strong trend movements while slowing down during periods of price consolidation. This adaptability makes it a versatile tool for various types of market analysis.
Calculation:
FRAMA(i) = A(i) * Price(i) + (1 - A(i)) * FRAMA(i-1)
where:
- FRAMA(i) is the current value of FRAMA.
- Price(i) is the current price.
- FRAMA(i-1) is the previous value of FRAMA.
- A(i) is the current exponential smoothing factor.
The exponential smoothing factor, A(i), is calculated as follows:
A(i) = EXP(-4.6 * (D(i) - 1))
where:
- D(i) is the current fractal dimension.
- EXP() is the mathematical exponent function.
The fractal dimension plays a crucial role in the indicator's behavior. When the price changes in a straight line (D = 1), the smoothing factor becomes 1, causing the indicator to closely follow the price. Conversely, when the price exhibits a strong saw-toothed movement (D = 2), the smoothing factor becomes very small (approximately 0.01), resulting in a slow-down similar to a 200-period simple moving average.
The fractal dimension is calculated using the following formula:
D = (LOG(N1 + N2) - LOG(N3))/LOG(2)
where N1, N2, and N3 are derived from the additional formula:
N(Length,i) = (HighestPrice(i) - LowestPrice(i))/Length
with:
- HighestPrice(i) as the current maximum value for Length periods.
- LowestPrice(i) as the current minimum value for Length periods.
Values N1, N2, and N3 are calculated as:
- N1(i) = N(Length,i)
- N2(i) = N(Length,i + Length)
- N3(i) = N(2 * Length,i)
The FRAMA indicator is a powerful tool for traders, offering a dynamic approach to trend analysis and market adaptation.
You may also like: Heiken Ashi Indicator with Adaptive Moving Average - excellent alternative for indicator users on MetaTrader 5.
⚠ Limitations & Risk Warning
- This tool is provided for educational and testing purposes only.
- Past performance does not guarantee future results.
- Trading involves substantial risk of loss. Use on a demo account first.
- Results may vary depending on market conditions, broker, and settings.
- We recommend thorough backtesting and forward testing before using with real funds.