Polarized Fractal Efficiency for Price Trend Detection
Summary
The document describes a Polarized Fractal Efficiency overlay designed to identify price trends. It plots a main indicator line over price along with upper and lower deviation bands. The indicator combines fast and slow rates of change, a sensitivity parameter, and a moving average with a standard deviation based on a configurable averaging period.
The sign of the slower price change determines whether the raw efficiency contribution is positive or negative, while the fast and slow rate changes jointly shape its magnitude. The bands scale the result around the moving average, and users can choose whether to display them. The text provides formulas and adjustable settings but no chart examples, trading rules, performance evidence, or guidance on parameter selection. It should therefore be read as an indicator definition rather than evidence that the overlay predicts profitable trades.
Key ideas
- The overlay is intended to help identify price trends.
- It displays a Polarized Fractal Efficiency line with moving average deviation bands.
- Fast and slow rates of change and a sensitivity setting influence the indicator value.
- The document defines calculations but provides no performance tests or entry and exit rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.