MESA Adaptive Moving Average (MAMA)
The Phase-Shifting Trend Hunter That Dances to the Market's Real Rhythm
Legendary DSP engineer John Ehlers brought his rocket-science toolkit to trading with the MESA Adaptive Moving Average (MAMA). Unlike boring fixed-period MAs that either lag forever in trends or freak out in chop, MAMA uses Hilbert Transform magic to 'listen' to the market's dominant cycle in real time. It cranks up the speed when price starts trending cleanly (low lag, baby!) and slams on the smoothing brakes during sideways drift (goodbye whipsaws). Bonus: it comes with its own sidekick FAMA for built-in crossover signals. It's like having a moving average with perfect pitch.
The Key Controls – Simple Knobs, Sophisticated Output
You don't need a PhD to run it – just these parameters:
- FastLimit (default 0.5): Caps how responsive MAMA can get – higher = snappier turns.
- SlowLimit (default 0.05): Floor for smoothing – lower = heavier filtering in chop.
- Source: Usually Close, but try HL2 or Heikin-Ashi on wild, wicky assets.
No fixed 'period' like traditional MAs – the adaptive alpha floats continuously between your limits.
How MAMA Hears the Cycle – Quick Geek Tour
In plain English:
- Light pre-smoothing to clean raw price noise.
- Hilbert Transform splits price into In-Phase (I) and Quadrature (Q) components.
- Calculate instantaneous Phase from I & Q.
- Track phase advance to estimate dominant cycle length.
- Derive adaptive α = 2 / (cycle period + 1).
- Clamp α between FastLimit and SlowLimit.
- MAMA updates like an EMA using that α.
- FAMA follows MAMA but with α/2 – slower companion line.
The MAMA/FAMA crossover is the built-in 'go' signal – no extra indicator needed.
Reading the Dance – Signals and What They Mean
Watch the two lines and their behavior:
- MAMA crosses above FAMA: Uptrend ignition – time to get long.
- MAMA crosses below FAMA: Downtrend starting – flip short or exit longs.
- Wide separation: Strong momentum – ride it, maybe even add to winners.
- Lines hug and flatten: Low-vol chop ahead – stand aside or play mean-reversion.
MAMA often goes horizontal early in ranges, giving you a heads-up before most other averages.
Tactical Tweaks – Dial It to Your Style
Small changes, big personality shifts:
- Micro-breakout hunting: Raise FastLimit toward 0.7–0.8 – quicker reactions.
- Whipsaw allergy: Drop FastLimit to 0.3–0.4 – calmer signals.
- Macro swings: Lower SlowLimit to 0.01–0.02 – rock-solid trend lines.
- Crypto chaos: Feed smoothed input (Heikin-Ashi close or HL2) to tame wicks.
Battle-Tested Playbooks
Proven ways to trade it:
- Classic Crossover: MAMA/FAMA cross for entries – filter with volume or higher-timeframe slope.
- Pullback Magic: MAMA > FAMA confirms uptrend → buy dips to MAMA → stop beyond swing low.
- Volatility Band Break: Wrap ATR bands around MAMA → trade clean breaks in the direction of MAMA slope.
Always add context – key levels, volume spikes, or higher-TF confirmation separate winners from noise.
Strengths, Limitations, and Gotchas
The Superpowers
- True self-tuning – no guessing periods, adapts to cycle changes instantly.
- Minimal lag on fresh trends, heavy smoothing in chop.
- Built-in FAMA gives clean crossover signals out of the box.
The Kryptonite
- Complex math – custom implementations need precision or they drift.
- Still lags sudden gaps/news shocks.
- Can flat-line too long in extended low-vol periods, delaying re-entries.
- Fussy with thin/illiquid data – phase detection gets wonky.
Your MAMA Launch Checklist
- Start with defaults (0.5 / 0.05) – they crush on most liquid assets.
- Backtest crossovers and pullbacks across trending and ranging phases.
- Layer higher-timeframe MAMA direction and structural context.
- Set alerts for crosses, slope changes, or price touches in trend.
- Review quarterly – tweak limits if signals lag or whipsaw too much.
Key Takeaways
MAMA uses Hilbert Transform wizardry to detect the market's dominant cycle and adapt smoothing in real time.
Fast in trends (low lag), slow in chop (low whipsaws) – the best of both worlds.
Built-in FAMA line delivers clean crossover signals without extra clutter.
Works across timeframes and assets, but loves liquid data.
Start conservative, add filters, manage risk – let MAMA tune into the market's groove and guide your trades with precision. Stay in phase and trade strong!
MESA Adaptive Moving Average (MAMA)
The Phase-Shifting Trend Hunter That Dances to the Market's Real Rhythm
Legendary DSP engineer John Ehlers brought his rocket-science toolkit to trading with the MESA Adaptive Moving Average (MAMA). Unlike boring fixed-period MAs that either lag forever in trends or freak out in chop, MAMA uses Hilbert Transform magic to 'listen' to the market's dominant cycle in real time. It cranks up the speed when price starts trending cleanly (low lag, baby!) and slams on the smoothing brakes during sideways drift (goodbye whipsaws). Bonus: it comes with its own sidekick FAMA for built-in crossover signals. It's like having a moving average with perfect pitch.
Table of Contents
The Key Controls – Simple Knobs, Sophisticated Output
You don't need a PhD to run it – just these parameters:
- FastLimit (default 0.5): Caps how responsive MAMA can get – higher = snappier turns.
- SlowLimit (default 0.05): Floor for smoothing – lower = heavier filtering in chop.
- Source: Usually Close, but try HL2 or Heikin-Ashi on wild, wicky assets.
No fixed 'period' like traditional MAs – the adaptive alpha floats continuously between your limits.
How MAMA Hears the Cycle – Quick Geek Tour
In plain English:
- Light pre-smoothing to clean raw price noise.
- Hilbert Transform splits price into In-Phase (I) and Quadrature (Q) components.
- Calculate instantaneous Phase from I & Q.
- Track phase advance to estimate dominant cycle length.
- Derive adaptive α = 2 / (cycle period + 1).
- Clamp α between FastLimit and SlowLimit.
- MAMA updates like an EMA using that α.
- FAMA follows MAMA but with α/2 – slower companion line.
The MAMA/FAMA crossover is the built-in 'go' signal – no extra indicator needed.
Reading the Dance – Signals and What They Mean
Watch the two lines and their behavior:
- MAMA crosses above FAMA: Uptrend ignition – time to get long.
- MAMA crosses below FAMA: Downtrend starting – flip short or exit longs.
- Wide separation: Strong momentum – ride it, maybe even add to winners.
- Lines hug and flatten: Low-vol chop ahead – stand aside or play mean-reversion.
MAMA often goes horizontal early in ranges, giving you a heads-up before most other averages.
Tactical Tweaks – Dial It to Your Style
Small changes, big personality shifts:
- Micro-breakout hunting: Raise FastLimit toward 0.7–0.8 – quicker reactions.
- Whipsaw allergy: Drop FastLimit to 0.3–0.4 – calmer signals.
- Macro swings: Lower SlowLimit to 0.01–0.02 – rock-solid trend lines.
- Crypto chaos: Feed smoothed input (Heikin-Ashi close or HL2) to tame wicks.
Battle-Tested Playbooks
Proven ways to trade it:
- Classic Crossover: MAMA/FAMA cross for entries – filter with volume or higher-timeframe slope.
- Pullback Magic: MAMA > FAMA confirms uptrend → buy dips to MAMA → stop beyond swing low.
- Volatility Band Break: Wrap ATR bands around MAMA → trade clean breaks in the direction of MAMA slope.
Always add context – key levels, volume spikes, or higher-TF confirmation separate winners from noise.
Strengths, Limitations, and Gotchas
The Superpowers
- True self-tuning – no guessing periods, adapts to cycle changes instantly.
- Minimal lag on fresh trends, heavy smoothing in chop.
- Built-in FAMA gives clean crossover signals out of the box.
The Kryptonite
- Complex math – custom implementations need precision or they drift.
- Still lags sudden gaps/news shocks.
- Can flat-line too long in extended low-vol periods, delaying re-entries.
- Fussy with thin/illiquid data – phase detection gets wonky.
Your MAMA Launch Checklist
- Start with defaults (0.5 / 0.05) – they crush on most liquid assets.
- Backtest crossovers and pullbacks across trending and ranging phases.
- Layer higher-timeframe MAMA direction and structural context.
- Set alerts for crosses, slope changes, or price touches in trend.
- Review quarterly – tweak limits if signals lag or whipsaw too much.
Key Takeaways
MAMA uses Hilbert Transform wizardry to detect the market's dominant cycle and adapt smoothing in real time.
Fast in trends (low lag), slow in chop (low whipsaws) – the best of both worlds.
Built-in FAMA line delivers clean crossover signals without extra clutter.
Works across timeframes and assets, but loves liquid data.
Start conservative, add filters, manage risk – let MAMA tune into the market's groove and guide your trades with precision. Stay in phase and trade strong!
Related Terms
Apply This Knowledge
Ready to put MESA Adaptive Moving Average (MAMA) into practice? Use our tools to analyze your portfolio and explore market opportunities.
This content is also available on our main website for public access.