Syntax
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 |
Description
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.
Interpretation
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.
Reference
Example
No example currently available.