Efficiency

Abbreviation: Efficiency

Category: Time Series

Input Parameters:

Name Range Default

Time Series Close

Periods Int >= 1 5

Calculation:

Efficiency Ratio = direction / volatility

where

direction = Momentum(Time Series, Periods)

volatility = NSTRDIND00090001.gif Absolute Value(Momentum(Lag(Time Series, n), 1), where n = 0 to Periods – 1

NSTRDIND00090001.gif represents the sum of values across a range of values (in this case n)

Absolute Value represents Absolute Value

Momentum represents Momentum

Lag represents Lag

Discussion:

Provides a ratio of direction to volatility, which shows how efficiently an issue moves from one price to another over a period of time.