Ehler MESA Adaptive Moving Average Energies Technical Analysis & Ehlers MESA Trading Signals

Mesa Adaptive Moving Averages was developed by John Ehlers

The MESA Adaptive average looks like two moving averages. The difference is that the MESA moves in a staircase manner and not in a curved line like the MA. The example illustrated and explained below shows this indicator drawn on a energies trading price chart.

Ehlers MESA Adaptive MA

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

This method features a fast Moving Average and a slow Moving Average so that composite average rapidly follows behind the energies price changes and holds the average value until the next candlestick close occurs. This energies indicator is less prone to whipsaws compared with the original Moving averages. This is because of its formula used to calculate the rate of change in relation to the energies trading price movement.