Filtering FRAMA Values to Identify Trend Changes

Summary

This note describes a filtered version of the Fractal Adaptive Moving Average (FRAMA) indicator. Its added value filter is intended to make trend identification easier without relying on the indicator’s slope, which the document says can produce false signals, particularly with one price-selection method for estimating fractals.

The suggested use is to treat changes in the indicator’s color as signals and experiment with both the filter size and the FRAMA calculation method. The document provides no formula, parameter settings, chart examples, performance results, or rules for entering and exiting trades. It therefore introduces a signal concept rather than a tested trading strategy; users would need to define and evaluate those details themselves.

Key ideas

• The indicator adds value filtering to a FRAMA calculation.
• Color changes are proposed as potential trading signals.
• The filter is intended to avoid relying on FRAMA slope to identify trends.
• Filter size and calculation method require experimentation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.