This code implements the MESA Adaptive Moving Average (MAMA) indicator, a complex adaptive filter designed to respond to cycles and smooth out price data. Here's a breakdown of its key features:
Key Elements:
- Hilbert Transform: The indicator uses a Hilbert Transform to calculate the dominant cycle phase and period of the price series, which helps in identifying the market cycle.
- Adaptive MAMA & FAMA:
- MAMA is the faster moving average that adapts to the dominant cycle.
- FAMA is the smoother, slower average.
- Both are plotted on the chart using different colors.
- Custom Candlestick Coloring:
- Candlesticks are colored green when MAMA is above FAMA (bullish condition).
- They are colored red when MAMA is below FAMA (bearish condition).
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