MAMA

MAMA (MESA of Adaptive Moving Averages) is an adaptive moving average based VertexFX Indicator that provides excellent trading entries.

This indicator consists of two components, the MAMA (BLUE line) and FAMA (RED line). The MESA Adaptive Moving Average is used as a replacement of traditional moving averages. As such, the MAMA and FAMA
can be traded just like ordinary moving averages.The concept of MAMA is to relate the phase rate of change of the prices to the alpha (smoothing constant) of the EMA. The FAMA (Following Moving Average) is calculated by applying the MAMA to the MAMA itself. By using an alpha in FAMA that is half the value of the alpha in MAMA, the FAMA steps in synchronization with MAMA. This indicator is ideal in reducing whipsaws.

BUY – Place Buy Position when Blue  line (MAMA) closes above Red line (FAMA). Close Buy positon when Blue line closes below Red line.

SELL – Place Sell position when Blue line (MAMA) closes below Red line (FAMA). Close Sell position when Blue line closes above Red line.

Usage

• Download the attachment.
• Copy it to your company VertexFX  Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.