The b_Kaufman Efficiency Ratio indicator for MetaTrader was built around the Kaufman’s Adaptive Moving Average (KAMA), a brain child of Perry Kaufman. The b_Kaufman_Efficiency_Ratio is a modified version of the original KAMA and is able to account for market volatility and noise.
The b_Kaufman Efficiency Ratio indicator closely monitors price swings when they’re somewhat small as well as noise in the market when low. The indicator has the ability to adjust during price swings, expand and trail prices from a greater distance. This indicator can be deployed in spotting the overall trend, time turning levels and screen price movements.
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Download the “b_Kaufman_Efficiency_Ratio.ex4” MT4 indicator
Example Chart
The default settings of this technical indicator are found in the parameter box once it is selected and traders can alter their values to suit their preference. The first parameter is the Efficiency Ratio Period that comes with a default value of “10,” it is advisable to desist from increasing this number. Traders can instead decrease its value to ramp up the indicator’s sensitivity.
The b_Kaufman_Efficiency_Ratio indicator displays a red line within its indicator window, but this can be changed to be viewed as histograms if the value “true” is selected away from its “false” value.
The trend is bearish as long as the b_Kaufman_Efficiency_Ratio indicator is falling and driving lower lows, while the trend is said to be bullish as long as the b_Kaufman_Efficiency_Ratio is rising and pushing higher highs.
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Download the “b_Kaufman_Efficiency_Ratio.ex4” MT4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (ERperiod, histogram, shift), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: signals