en Lopez Efficiency 2.0
Metatrader Indicator (MT4/MT5)
-
ℹ Overview
Your reliable trading semaphor
This indicator analyzes how efficient is the current market movement based on the true high-low ratio of a certain number of bars. It displays how many typical true ranges has the market moved during the desired number of bars. The typical true range is the average true high-low range from the last number of bars, which is later compared with the absolute market movement during the same period of time. The indicator ratio gives you a measure of market efficiency, as a ratio between the range and the market movement.
- The ratio is the effectiveness of the market movement
- A ratio below 1 means the market is going nowhere
- A ratio above 1 means the market is starting to show directionality
- A ratio above 2 means the market is showing effective movement
- A ratio above 3 means the market moved too much: it will halt or retrace
- Zero means the market is not efficient and is going nowhere
It has straightforward trading implications.
- Look for positional opportunities when the line is red
- Look for range trading opportunities when the ratio is orange
- Look for trend trading opportunities when the ratio is blue
- ≡
Input parameters
When loading the expert to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks.
- Period
- Amount of bars used to calculate the market efficiency.
- ?
FAQ
- Does the indicator repaint?
- No, it does not repaint.
- Does the indicator implement alerts?
- No, it does not.
Screenshots
