Efficiency Ratio (Kaufman)
or "Generalized fractal efficiency"
Measures price trend effectiveness. Where 1.00 is trending and 0.00 not.
Calculation:
ER = Change / Sum of absolute changes
where "Change" is a price change over specified period and "Sum of Changes" sum of absolute price movements within that period
As an example, to calculate 5-day ER you have to calculate 5-day change and then calculate absolute sum of each day movements:
5-day ER = 5-day change / (|day 1 change| + |day 2 change| + |day 3 change| + |day 4 change| + |day 5 change|)
Source: www.marketvolume.com.../efficiencyratio.asp
Measures price trend effectiveness. Where 1.00 is trending and 0.00 not.
Calculation:
ER = Change / Sum of absolute changes
where "Change" is a price change over specified period and "Sum of Changes" sum of absolute price movements within that period
As an example, to calculate 5-day ER you have to calculate 5-day change and then calculate absolute sum of each day movements:
5-day ER = 5-day change / (|day 1 change| + |day 2 change| + |day 3 change| + |day 4 change| + |day 5 change|)
Source: www.marketvolume.com.../efficiencyratio.asp
Versionsinformation:
@version=2 to @version=4
Versionsinformation:
correct chart now
Versionsinformation:
Bumped to V5