capissimo

Polarized Fractal Efficiency

Polarized Fractal Efficiency

Description:

Technically, Polarized Fractal Efficiency ( PFE ) is a measure of market choppiness . It is an indicator derived from fractal 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 PFE greater than zero are deemed to be trending up, while a reading of less than zero indicates the trend is down. Polarized Fractal Efficiency's signature characteristic is its use of fractal geometry in determining how efficiently a security's price is moving.

This script uses a customized version of PFE formula and generates a long entry signal when the Polarized Fractional Efficiency ( PFE ) value crosses over a signal line, and/or generates a short entry signal when the PFE 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 PFE 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 PFE relative to the zero line.

As a general rule, the further the PFE value is away from zero, the stronger and more efficient the given trend is. A PFE value that fluctuates around the zero line could indicate that the supply and demand for the security are in balance and price may trade sideways.
Script open-source

Nello spirito di condivisione promosso da TradingView, l'autore (al quale vanno i nostri ringraziamenti) ha deciso di pubblicare questo script in modalità open-source, così che chiunque possa comprenderlo e testarlo. Puoi utilizzarlo gratuitamente, ma il riutilizzo del codice è subordinato al rispetto del Regolamento. Per aggiungerlo al grafico, mettilo tra i preferiti.

Vuoi usare questo script sui tuoi grafici?

Commenti

Can you explain a little bit on indicator lag parameter little bit please
Rispondi
capissimo henryph24
@henryph24, lag is a plain vanilla lookback window. This term is widely applied in time seires processing.
Rispondi
henryph24 capissimo
@capissimo, so essentially it is like the "length" as with other indie right? sorry for my noob and thank yo boss
Rispondi
capissimo henryph24
@henryph24, right you are. Lag is used in ARIMA models and the likes.
+1 Rispondi