Fractal Adaptive MACD - MetaTrader 5 Script | Trading Script Download - MT4/MT5 Resources

The Fractal Adaptive Moving Average technical indicator (FRAMA) was developed by John Ehlers. The indicator is based on an exponential moving average constructed algorithmically, where the smoothing factor is calculated based on the current fractal dimension of the price series. The advantage of FRAMA is that it can track strong trend moves and slow down enough when prices consolidate.

MACD calculation using Fractal Adaptive Moving Average (FRAMA) can be somewhat difficult without performing some extra steps. A smoothing feature has been added to this indicator to make the Fractal Adaptive MACD more consistent with what we expect from a MACD type indicator.

Without smoothing it would be "tense" (too many signals) due to its adaptive nature (reacting too quickly when we expect lag - this is a fundamental part of any MACD indicator - the "convergence/divergence" part of MACD only happens if there is some reasonable lag). Super Smooth is used for smoothing in this case (there may be some other options as well, but since we need smoother results and minimal lag addition caused by smoothing, Super Smooth is a reasonable choice).

The signal line in this indicator is also FRAMA, which makes it a "Full FRAMA MACD" indicator.

Attachment download

📎 macd_frame.mq5 (15.35 KB)

Source: MQL5 #20145