Purpose of the FRAMA
The Fractal Adaptive Moving Average (FRAMA), developed by John Ehlers, uses the fractal dimension of price to adjust its speed. In strong trends it follows price closely; in choppy markets it slows down and flattens. This helps reduce false signals compared with a regular moving average.
How It Works
When you select Fractal Adaptive MA (FRAMA) in the Trade Rule block, you can configure it with the following settings:
Period of FRAMA
The number of candles used for the calculation.
Example: A period of 14 uses the last 14 candles.
Shift of FRAMA (Advanced Option)
Moves the line forward or backward on the chart by a set number of candles.
Applied Price of FRAMA (What the FRAMA is calculated from)
Close Price: Uses the candle's closing price.
Open Price: Uses the candle's opening price.
High Price: Uses the highest price in the candle.
Low Price: Uses the lowest price in the candle.
Median Price: (High + Low) ÷ 2
Typical Price: (High + Low + Close) ÷ 3
Weighted Price: (High + Low + Open + Close) ÷ 4
Time Frame of FRAMA
Sets the chart time frame for the FRAMA calculation.
Can be replaced with a variable or input for quick testing and optimization.
Candle ID of FRAMA
Defines which candle the calculation starts from.
0: Current candle (still forming).
1: Most recently closed candle.
Higher IDs refer to older candles.
Adjust of FRAMA (Modify the Result)
Apply an adjustment to the calculated value by adding, subtracting, multiplying, or dividing by a number.
Example
If you set:
Period: 14
Applied Price: Close
Candle ID: 1
You get the FRAMA value of the most recently closed candle, calculated from closing prices.
Use Cases
Use price above or below the FRAMA as a trend filter.
Use the FRAMA as a dynamic support or resistance line.
Replace a regular moving average to reduce whipsaws in sideways markets.
Can also be used as a Custom level stop-loss or take-profit, as a pending-order price, and as the Modify SL/TP reference price.
⚠ Tip: A flattening FRAMA often means the market is losing direction. Wait for it to slope again before trading trend signals.