Description
The Polarized Fractal Efficiency (PFE) indicator draws on Mandelbrot and fractal geometry to illustrate the efficiency of how pricing moves between two points over time. The more linear and efficient the price movement, the shorter the distance the prices must travel.
Use the PFE indicator to measure how trendy or congested the price action is. PFE readings above zero indicate that the trend is up and the higher the reading the "trendier" and more efficient the upward movement. PFE readings below zero mean that the trend is down. The lower the reading the "trendier" and more efficient the downward movement. Readings near zero indicate choppy, less efficient movement and a balance between supply and demand.
Input Parameters
| Parameter | Description |
|---|---|
length
|
The number of bars used to calculate the PFE. |
smoothing length
|
The number of bars used to smoothen the PFE. |
Plots
| Plot | Description |
|---|---|
PFE
|
The Polarized Fractal Efficiency indicator. |
UpperLevel
|
The level above which the upward trend is established. |
ZeroLine
|
Zero level. |
LowerLevel
|
The level below which the downward trend is established. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.
Past performance is no guarantee of future performance.