Ehler MESA Adaptive Moving Average Stocks Technical Analysis and Ehlers MESA Stocks Signals

Mesa Adaptive Moving Averages was developed by John Ehlers

The MESA Adaptive average looks like two moving averages. The difference is that the MESA moves in a staircase manner and not in a curved line like the Moving Average. The example illustrated and explained below shows this indicator drawn on a stocks price chart.

Ehlers MESA Adaptive MA

The MESA Adaptive Moving Average is a stocks trend following indicator that adapts to stocks price action movement based on the rate of change of stocks price as measured by the Hilbert Transform Discriminator. This stocks indicator will generate a trade signal when the two MAs cross one another. Trades should be executed in the direction of the MESA averages.

This method features a fast Moving Average and a slow Moving Average so that composite average rapidly follows behind the stocks price changes and holds the average value until the next candlestick close occurs. This stocks indicator is less prone to whipsaws compared with the original Moving averages. This is because of its formula used to calculate the rate of change in relation to the stocks price movement.