Ehlers Mother Of Adaptive Moving Averages

The Ehlers Mother Of Adaptive Moving Averages indicator provides a specialized trend-following framework that utilizes two adaptive moving averages to track price momentum and market direction with minimal lag.

Usage

The Usage section describes how the script can be used, specifically as a trend-following tool or a crossover system.

• Trend Identification: The indicator consists of two lines: the MAMA (MESA Adaptive Moving Average) and the FAMA (Following Adaptive Moving Average). An uptrend is identified when the MAMA (colored line) is above the FAMA (neutral line). Conversely, a downtrend is identified when the MAMA is below the FAMA.
• Crossover Signals: Users typically look for crossovers between the MAMA and FAMA. A bullish signal occurs when the MAMA crosses above the FAMA (turning green), while a bearish signal occurs when the MAMA crosses below the FAMA (turning red).
• Price Interaction: The position of the price relative to both lines can act as further confirmation; prices remaining above both lines suggest strong bullish momentum.
• Visual Feedback: The script includes an optional bar coloring feature that changes the candle colors to match the trend detected by the MAMA, facilitating easier visual analysis of the current market state.

Details

The Mother Of Adaptive Moving Averages (MAMA) was developed by John Ehlers and detailed in his publication "Rocket Science For Traders." The primary objective of this algorithm is to adapt to price movement based on the rate of change of the phase of the cycle.

Unlike standard moving averages that use a fixed period, MAMA adjusts its smoothing factor (alpha) based on the Hilbert Transform phase calculations. This allows the indicator to remain highly responsive during trending periods while rapidly slowing down (becoming "stiff") during consolidation or sideways markets. The FAMA is derived from the MAMA by applying an additional layer of smoothing, resulting in a following average that is even more stable and exhibits significantly less "jitter" than the primary MAMA line, making the crossover between the two a reliable trend filter.

Settings

• Source: Determines the price data used for calculations (e.g., Close, Open, HL2).
• Resolution: Allows the user to calculate the indicator on a different timeframe than the current chart.
• Allow Repainting?: Toggles whether the indicator should calculate based on real-time data or confirmed historical bars.
• Allow Bar Color Change?: Enables or disables the changing of candle colors based on the trend direction.
• FastLimit: Sets the upper limit for the adaptive alpha (smoothing factor). Higher values make the MAMA more responsive.
• SlowLimit: Sets the lower limit for the adaptive alpha, ensuring the average continues to update even in very slow markets.

FAQ

How do I interpret the colors of the MAMA line?

The MAMA line turns green when it is above the FAMA, indicating a bullish trend, and turns red when it is below the FAMA, indicating a bearish trend.

What makes this different from a standard Moving Average?

Unlike a standard EMA or SMA, the MAMA adapts its speed based on market volatility and phase, allowing it to reduce lag during trends while avoiding whipsaws in range-bound markets.

How can I access the Ehlers Mother Of Adaptive Moving Averages?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.