mrtools wrote: Wed Nov 30, 2022 8:26 am This is Mladen's directional efficiency ratio, smoothed with a Jurik moving average. Seems ok with a large Jurik smoothing period.
About efficiency ratio:
The Efficiency Ratio (ER) was first presented by Perry Kaufman in his 1995 book ‘Smarter Trading‘. It is calculated by dividing the price change over a period by the absolute sum of the price movements that occurred to achieve that change. The resulting ratio ranges between 0 and 1 with higher values representing a more efficient or trending market. The Kaufman Efficiency Ratio is also know as Fractal Efficiency. It can be used as a filter to differentiate between trending conditions and sideways markets.
This version: The original Efficiency ratio does not show the direction of the market. Also has a choice between anchored or non-anchored discontinued signal lines.
Attachments forums
Re: DSL (Discontinued Signal Line) indicators
vvFish, Wed Nov 30, 2022 4:26 pm