FAMA MR PIP Indicator

FAMA MR PIP Indicator

FAMA MR PIP Indicator For MT4 plots the trend direction using the MESA indicator and FAMA line to provide early forex trend trading signals

The FAMA MR PIP indicator for MT4 is a forex trend following indicator that acts based on the rate of change of phase. The FAMA – Following Adaptive Moving Average is actually a MAMA – MESA Adaptive moving average. In fact MAMA contains a slow and fast moving average, but FAMA is the combination of both these lines and reacts quickly to price changes.

New forex traders should require preliminary knowledge about the MAMA indicator to understand the movements of the FAMA line. However, advanced forex traders using moving averages will find it easy to work with. The indicator does not repaint after the candle close.

FAMA MR PIP Indicator For MT4 Trading Signals

The indicator plots the red indicator line on the price chart. Since the indicator is a combination of two MAMA lines, it is very close to the candlesticks. Traders use the sharp up and downward turns of the FAMA indicator as entry points. However, the indicator provides trend direction and works better in confluence of other indicators.

Generally, forex traders should use the indicator in confluence with MAMA indicator. If both lines of MAMA crossover are in the direction of the FAMA line, then it confirms the trading signal.

If both MAMA lines have a bullish crossover and if the FAMA line confirms the same direction, traders should enter a buy trade. Similarly, upon a bearish crossover of the MAMA lines and given the confirmation of direction from FAMA, traders enter a sell position.
Another trading strategy is to combine the FAMA indicator line with an oscillator. In this strategy the direction of FAMA line confirms the overbought and oversold trading signals.

Conclusion
In summary, the FAMA MR PIP indicator for MT4 is a very interesting tool for forex traders using moving averages.