Log in to see Cloud of Tags

Wealth-Lab Wiki

Kaufman's Efficiency Ratio



public ER(DataSeries ds, int period, string description)
public static ER Series(DataSeries ds, int period)

Parameter Description

ds Data series
period Indicator lookback period


The Efficiency Ratio was invented by Perry J. Kaufman and presented in his book "New Trading Systems and Methods".

It's calculated by dividing the net change in price movement over N periods by the sum of all component moves, taken as absolute numbers, over the same N periods.


ER can be considered as a ratio of the price direction to its volatility. The more efficient the market is, the faster is its trend.



No example currently available.

Important Disclaimer: The information provided by Wealth-Lab is strictly for informational purposes and is not to be construed as advice or solicitation to buy or sell any security.  The owner of Wealth-Lab.com assumes no liability resulting from the use of the material contained herein for investment purposes. By using this web site, you agree to the terms of this disclaimer and our Terms of Use.

ScrewTurn Wiki. Some of the icons created by FamFamFam.