Polarized Fractal Efficiency - PFE

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.

BREAKING DOWN '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. Disparity Index

    A technical indicator that measures the relative position of ...
  2. Zero-Bound

    A situation that occurs when the Federal Reserve has lowered ...
  3. Ease Of Movement

    A technical momentum indicator that is used to illustrate the ...
  4. Zero Percent

    A promotional rate of interest used to entice consumers, often ...
  5. Demarker Indicator

    An indicator used in technical analysis that compares the most ...
  6. Ultimate Oscillator

    A technical indicator invented by Larry Williams that uses the ...
Related Articles
  1. Markets

    Pfizer Short Interest Continues to Rise (PFE)

    Dating back to March 2015 the only ones to have made money on PFE stock have been the short sellers. Do they know something long investors don't?
  2. ETFs & Mutual Funds

    Why These ETFs are the Best Way to Trade Pfizer

    Looking to play Pfizer with diversification? Consider these ETFs.
  3. Investing

    Introduction To Counterparty Risk

    Unlike a funded loan, the exposure from a credit derivative is complicated. Find out everything you need to know about counterparty risk.
  4. ETFs & Mutual Funds

    How Traders Can Utilize CCI (Commodity Channel Index) To Trade Stock Trends

    Use the Commodity Channel Index (CCI) to enter and exit price trends.
  5. Trading

    Four Commonly Used Indicators In Trend Trading

    No single indicator can punch a ticket to market riches, but here are four that remain popular among trend traders.
  6. Trading

    Momentum Indicates Stock Price Strength

    Momentum can be used with other tools to be an effective buy/sell indicator.
  7. Markets

    Pfizer Stock Rises Ahead of Earnings (PFE, AGN)

    It turns out Pfizer might not have needed Allergan after all, given that PFE shares have surged 9% and 7.3% in the respective one month and three months.
  8. Trading

    The Four Most Common Indicators in Trend Trading

    Here are the top indicators and tools trend traders use to establish when trends exist and find entry/exit points.
  9. Investing

    Pfizer Stock Rises Despite Price Target Cut (PFE)

    Shares of Pfizer rose as much as 1.37% Monday, reaching a session high of $34.69 even though the drug giant saw its price target reduced by Jefferies
  10. Trading

    Exploring Oscillators and Indicators: Leading And Lagging Indicators

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com Indicators can be separated into two main types - leading and lagging - both differing in what they show users. Leading ...
RELATED FAQS
  1. What are the best technical indicators that complement the Polarized Fractal Efficiency ...

    Learn some of the best complementary technical indicators that can be utilized in conjunction with the polarized fractal ... Read Answer >>
  2. What is the Polarized Fractal Efficiency (PFE) formula and how is it calculated?

    Take a deeper look at the calculations within the polarized fractal efficiency indicator, an oscillator that measures the ... Read Answer >>
  3. What is a common strategy traders implement when using the Polarized Fractal Efficiency ...

    Understand the polarized fractal efficiency indicator and learn a common trading strategy that can be implemented using this ... Read Answer >>
  4. Why is the Polarized Fractal Efficiency (PFE) important for traders and analysts?

    Discover how traders and analysts use the polarized fractal efficiency indicator to show the relative efficiency of price ... Read Answer >>
  5. How do I use Polarized Fractal Efficiency (PFE) to create a forex trading strategy?

    Discover a forex trading strategy designed to profit from market reversal signals generated by the Polarized Fractal Efficiency, ... Read Answer >>
  6. Does a strong trend (ADX > = 40) cause an increase in volatility?

    In technical analysis, there have been numerous indicators invented for identifying trends. One of the most common of these ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center