Fractal efficiency is a well-known concept. It is based on chaos theory, fractals and geometry. It determines the popularity of the market. If the PFE indicator is above the zero line, the market is in an uptrend. A lower area indicates a downtrend. If the value is very close to zero, the market is in a range. This indicator is useful for all types of traders, including scalpers and long-term traders.
The indicator can be used at any time to trade any instrument.
How to use the Polarised Fractal Efficiency Indicator
The important thing is to wait for the value of the item to reach zero.
When it crosses the zero line, buy.
When the value drops below the zero line, sell.
This image shows the price movement of the cable over a 5 minute period. When the value falls below the zero line, the indicator will signal a sell. The indicator drops lower into the negative zone and the price falls. When the price crosses back into the positive zone, exit.
The ideal indicator for identifying market trends is the Polarisation Fractal Efficiency. The value of this indicator will tell you the direction of the market. When it is above the line, it is in an uptrend. A negative zone is a sign that there is a short position.