Fractal Adaptive MACD with Super Smoother Filtering

Summary

This indicator adapts MACD to changing price behavior by using Fractal Adaptive Moving Averages. FRAMA adjusts its smoothing factor according to the price series’ fractal dimension, aiming to respond to strong trends while slowing during consolidation. The design also uses FRAMA for the signal line, making the indicator’s MACD components adaptive.

The description says that an unsmoothed version can react too quickly and produce excessive signals. It adds a Super Smoother filter to reduce that sensitivity while seeking to add little lag. This is a design rationale, not a measured evaluation: the document reports no parameter settings, market tests, signal performance, or comparison with conventional MACD. Other smoothing choices may be possible, and the claimed balance between responsiveness and lag would need empirical assessment for the intended market and timeframe.

Key ideas

• FRAMA varies its smoothing according to the price series’ fractal dimension.
• The indicator uses adaptive averages in both its MACD calculation and signal line.
• A Super Smoother filter is added to curb excessive reactions from the adaptive calculation.
• The document explains the design but presents no performance testing or market-specific evidence.

Tags

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