Download: pfe.ela
File Includes: Indicator - PFE (Polarized Fractal Efficiency)
Category: Indicator > Fractals
Description:
The Polarized Fractal Efficiency (PFE) indicator measures the efficiency of price movements by drawing on concepts from fractal geometry and chaos theory. The more linear and efficient the price movement, the shorter the distance the prices must travel between two points and thus the more efficient the price movement.
Usage:
The PFE indicator measures how trendy or congested the price action is. PFE readings above zero indicate that the trend is up. 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, with a balance between the forces of supply and demand. StockSpotter uses a short-term smoothed PFE with an intermediate lookback interval and produces buy/sell signals based on PFE threshold crossings.
EasyLanguage Code:
VARS: PFE(0), C2C(0), COUNTER(0), FRACEFF(0), EMA(0);
PFE = 0;
C2C = 0;
COUNTER = 0;
FRACEFF = 0;
EMA = 0;
PFE = SQUAREROOT (POWER(CLOSE - CLOSE[9], 2) + 100);
FOR COUNTER = 1 TO 9
BEGIN
C2C = C2C + SQUAREROOT(POWER((CLOSE[COUNTER - 1] - CLOSE[COUNTER]),2) + 1);
END;
IF (CLOSE - CLOSE[9]) > 0 THEN
FRACEFF = ROUND((PFE / C2C) * 100,0)
ELSE
FRACEFF = ROUND(-(PFE / C2C) * 100,0);
IF CURRENTBAR = 1 THEN EMA = FRACEFF
ELSE
EMA = ROUND((FRACEFF * 0.333) + (EMA[1] * (1 - 0.333)),0);
PLOT1(EMA,"EMA");
PLOT2(50,"BUYZONE");
PLOT3(-50,"SELLZONE");