Technically, ( ) is a measure of market . It is an indicator derived from geometry, the mathematics that describes chaotic systems.
This technical indicator was developed by Hans Hannula to determine price efficiency over a user-defined period. This indicator fluctuates between -100 and +100, with 0 as the centerline. Securities with a greater than zero are deemed to be trending up, while a reading of less than zero indicates the trend is down. Polarized Efficiency's signature characteristic is its use of geometry in determining how efficiently a security's price is moving.
This script uses a customized version of formula and generates a long entry signal when the Polarized Fractional Efficiency ( ) value crosses over a signal line, and/or generates a short entry signal when the value crosses under a signal line.
The Polarized Fractional Efficiency indicator can be used to determine price efficiency over a user-defined time period. Assets with a greater than zero are deemed to be trending up, while a reading of less than zero indicates the trend is down. The strengh of the trend is measured by the position of the relative to the zero line.
As a general rule, the further the value is away from zero, the stronger and more efficient the given trend is. A value that fluctuates around the zero line could indicate that the for the security are in balance and price may trade sideways.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.