The Polarized Fractal Efficiency (PFE) is a technical indicator that was developed by Hans Hannula to determine price efficiency over a user-defined period. This indicator fluctuates between -100 and +100, with 0 as the centerline. Securities with a PFE greater than zero are deemed to be trending up, while a reading of less than zero indicates the trend is down. Polarized Fractal Efficiency’s signature characteristic is its use of fractal geometry in determining how efficiently a security’s price is moving. We use this technical indicator in our Scalp and Zone Methodologies.
The key things to remember about the PFE:
- PFE is a technical indicator that determines price efficiency over a user-defined period.
- PFE uses fractal geometry to determine how efficiently a security’s price is moving.
- The indicator helps traders determine the direction and strength of a trend.
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