FRAMA Indicator
FRAMA indicator for MT5. support and resistance indicator. The best forex indicator. Forex momentum indicator.
Description
The Fractal Adaptive Moving Average, also known as the FRAMA indicator for MetaTrader, is an optimized trend following forex indicator. The indicator is built to closely monitor changes in price movement, especially in a trending market. However, it remains unchanged whenever the price starts to move sideways.
This suggests that the indicator is best used to find trade setups in a trending market in order to get profitable trades with a higher probability. The moving average is the main component that the indicator uses to measure fractal price changes.
The FRAMA indicator helps to determine when the market is trending or moving sideways. It also helps you determine when the market is gaining or losing momentum. What’s more, it can also be used as a dynamic support/resistance tool to spot a trading opportunity on a minor price reversal.
The indicator will not mess up your chart and is ideal for a variety of trading methods such as scalping and day/intraday trading. It is also suitable for swing trading; however, swing trading setups are best generated on the D1 timeframe and above.
The FRAMA indicator can also be used by novice traders to easily determine the market trend. Experienced traders will also find the indicator useful as a confluence for entering and exiting trades.
How to trade with the FRAME indicator
The screenshot above shows how the Frama indicator would look like on the MT5 Dashboard, with illustrations of where to BUY/SELL. The indicator can be used with other indicators to filter signals. In addition, it can provide optimal BUY/SELL entries in combination with price action.
Before opening a BUY/SELL position, you must first determine the market trend and trade in that direction. The trend, they say, is your friend.
BUY Pattern: The above BUY signal was generated by the FRAMA indicator after the price broke the market structure and returned to retest the indicator line. The gap in the structure indicates a potential upward movement, and the indicator acted as a dynamic support.
Thus, you can open a BUY position after a bullish engulfing candlestick pattern has formed. This shows confirmation that the price has likely reached the end of the pullback and is ready to move higher.
Installation for SALE. The above SELL setups also followed the same principle as the BUY signal. Wait for the downtrend to establish, open a SELL position as soon as you notice a bearish candlestick reversal pattern (bearish engulfing) on the indicator line.
Conclusion
The FRAMA indicator for MT5 looks very simple on a chart but can improve your trading. What’s more, it has a smoothing effect, which makes it virtually lag-free, thus following the market trend very accurately. Finally, the indicator is free to download.