Polarized Fractal Efficiency

Polarized Fractal Efficiency plots Hannula's signed efficiency ratio: the straight-line distance price covered over the window divided by the bar-by-bar path it actually traced, scaled to 100 and flipped negative when the net move is down. That makes polarized fractal efficiency a one-line regime gauge (direction and trend quality in the same bounded reading) drawn with a gradient fill against zero, dotted bounds at +/-100 and dashed trending levels at +/-50.

How to Trade the Polarized Fractal Efficiency?

• Reading beyond +50 or below -50: the move is graded an efficient trend; persistent readings out there favor pullback entries in the trend's direction, with alerts on the crossing.
• Efficiency decay: the line bending back inside the trending level says the trend is losing its straight-line quality, an early caution rather than a reversal call, with its own alert pair.
• Zero crosses: the net move over the window flipped sign; optional markers circle them and alerts fire either way.

A reading that churns near zero favors range tactics instead.

Polarized Fractal Efficiency Settings

• Source (default close): the series measured for path efficiency.
• Length (default 10): the efficiency window; longer makes the regime call steadier but later.
• Smoothing (default 5): EMA applied to the raw ratio so single bars can't whip the reading; 1 disables it.
• Scale-Adjusted Changes (default off): expresses each change in percent of the window's anchor close, reducing sensitivity to the instrument's price scale.
• Trending Level (default 50): the absolute reading treated as trending; anchors the regime and decay events.
• Trending Regime Background and Zero Cross Markers (both off), plus color controls.

Frequently Asked Questions

How does PFE compare to the Choppiness Index?

What does Scale-Adjusted Changes do?

Can PFE predict a trend before it starts?