Polarized Fractal Efficiency (PFE)
The Polarized Fractal Efficiency indicator uses fractal geometry to determine how efficiently the price is moving. When the PFE is zigzagging around zero, then the price is congested and not trending. When the PFE is smooth and above/below zero, then the price is in an up/down trend. The higher/lower the PFE value, the stronger the trend is.
The Polarized Fractal Efficiency indicator was developed by Hans Hannula and was introduced in the January, 1994 issue of Technical Analysis of Stocks & Commodities magazine.
Formula:
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