Polarized Fractal Efficiency Indicator

Polarized Fractal Efficiency Indicator

Polarized Fractal Efficiency is an ideal trend identifier. It is accurate and easy to discern buy and sell signals.

The Polarized Fractal Efficiency has been around for almost three decades. Its formation is premised on fractals, geometry, and chaos theory. Essentially, it determines how trendy the market is. When the PFE indicator is above the zero line, the market is in an uptrend, while the area below the zero line indicates a downtrend. If the value is close to zero, it means the market is ranging. Whether you are a scalper or a long-term trader, this indicator will serve you well.

You can use the indicator in any time frame to trade any instrument.

How to Use The Polarized Fractal Efficiency indicator
The whole idea is to wait for the value to cross the zero line.

Buy when it crosses above the zero line.
Sell when the value crosses below the zero line.

Trading Example

The picture shows the price movement of cable in a five minutes time frame. The indicator gives a sell signal when the value dips below the zero line. Notice how the price dipped as the indicator fell low into the negative zone. You should exit when the price crosses back to the positive zone.

Conclusion
Polarized fractal efficiency is an ideal indicator for identifying the market trend. It tells the market direction depending on the value of the indicator. When it is above the zero line, the currency pair is on uptrend while a negative zone indicates a short position.