MESA Adaptive Moving Average (MAMA)
A moving average that adapts to price movement based on the rate of change of phase.
Usage
Use as a highly responsive moving average that virtually eliminates overshoot while providing rapid response to price changes. The companion 'FAMA' (Following Adaptive Moving Average) provides a secondary line for crossover signals.
Background
MAMA adapts to the price movement based on the Hilbert Transform phase rate of change. It provides a unique combination of fast response to price changes while remaining smooth during congested market periods. It is one of the most sophisticated adaptive moving averages available. — Rocket Science for Traders
Parameters
fastlimit(default: 0.5): Fast limitslowlimit(default: 0.05): Slow limit
Formula
\[
\alpha = \frac{\text{FastLimit}}{\text{PhaseRate}}
\]