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 Commentary
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 Links
Introduction To Technical Analysis
Market Breadth: A Directory of Internal Indicators
Essentials of Building an Indicator
See also: Demand, Indicator, Oscillator, Sideways Market, Supply, Technical Analysis, Trend
Also spelled: PFE