The Mother Of Adaptive Moving Averages
The Mother Of Adaptive Moving Averages was created by John Ehlers (Rocket Science For Traders”, pgs. 182-183).
This works as a trend indicator and a typical moving average. When the Mama (color) is above the Fama (blue) then the stock is in an uptrend and vice versa. Of course it is also good when the price is above the Fama and Mama lines. Buy when the indicator line is green and sell when it is red. 😕