Watch how to download trading robots for free

Interesting script?
So post a link to it -
let others appraise it

You liked the script? Try it in the MetaTrader 5 terminal

Indicators

Efficiency ratio directional with levels - indicator for MetaTrader 5

Mladen Rakic

Views:
596
Rating:
votes: 7
Published:
2018.10.11 12:28

Basics :

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. This version does that. Also, in order to identify market conditions self adjusting levels are added in order to make it easier to spot the change and current state of the market

Usage :

You can use the color changes to assess market direction and trend changes

Step average - std based Step average - std based

Step average - standard deviation based

Step average (atr based) Step average (atr based)

Step average - average true range based

ATR adaptive Laguerre RSI ATR adaptive Laguerre RSI

ATR adaptive Laguerre RSI

ATR adaptive smooth Laguerre RSI ATR adaptive smooth Laguerre RSI

ATR adaptive smooth Laguerre RSI