Polarized Fractal Efficiency - PFE

AAA

DEFINITION of 'Polarized Fractal Efficiency - PFE'

A technical indicator developed by Hans Hannula that was invented to determine price efficiency over a user-defined time period. This indicator fluctuates between -100 and +100 with 0 as the center line. 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.

INVESTOPEDIA EXPLAINS 'Polarized Fractal Efficiency - PFE'

The strengh of the trend is measured by the position of the PFE relative to the zero line. As a general rule, the further the PFE value is away from zero, the stronger and more efficient the given trend is. A PFE value that fluctuates around the zero line could indicate that the supply and demand for the security are in balance and price may trade sideways.

RELATED TERMS
  1. Sideways Market / Sideways Drift

    A sideways market occurs where the price trend of a certain trading ...
  2. Indicator

    Statistics used to measure current conditions as well as to forecast ...
  3. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  4. Demand

    An economic principle that describes a consumer's desire and ...
  5. Trend

    The general direction of a market or of the price of an asset. ...
  6. Supply

    A fundamental economic concept that describes the total amount ...
Related Articles
  1. How To Build A Trading Indicator
    Forex Education

    How To Build A Trading Indicator

  2. Market Breadth: A Directory Of Internal ...
    Active Trading Fundamentals

    Market Breadth: A Directory Of Internal ...

  3. Playing Penny Stock-Like ETFs
    Stock Analysis

    Playing Penny Stock-Like ETFs

  4. Hypothesis Testing in Finance: Concept ...
    Active Trading Fundamentals

    Hypothesis Testing in Finance: Concept ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center