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Strategies & Market Trends : Metastock 6.0 for Window

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To: Warthog who wrote (4018)7/26/2004 11:49:30 AM
From: SnowShredder  Read Replies (2) of 4056
 
Any thoughts on how to make this indicator? Does anyone use it? (from Perry Kaufman's Smarter Trading Book, clipped from BigTrends.com email)

Thanks.

SS

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Efficiency Ratio = (10-day price change)/(Absolute Sum of 10 daily closing price differences) - the idea here is that you can get a read of the net directional movement in the trend compared to the total amount of distance the stock moved over the period based on the sum of its daily ranges.
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