Kaufman volatility and efficiency ratio indicators

[Alexander.Gettinger]

Indicators is written according to Perry Kaufman books "Smarter Trading" and "Trading Systems & Methods".

Formulas for volatility indicator:
Volatility[i]=(DiffPrice[i]+DiffPrice[i-1]+...+DiffPrice[i-Period])/Period, where
DiffPrice[i]=Abs(close[i]-close[i-1]).

Formulas for efficiency ratio indicators:
Ratio[i]=Abs(close[i]-close[i-Period])/Volatility(i).

Download Kaufman volatility indicator:

Kaufman_Volatility.lua

(1.2 KiB) Downloaded 1072 times

Download Kaufman efficiency ratio indicator:

Kaufman_Efficiency_Ratio.lua

(1.34 KiB) Downloaded 1104 times

[nazaar]

hello,

any suggestion how to interpret and trade these indicators?

thank you.

[Coondawg71]

Can we please request this version of Kaufman Efficiency Ratio Indicator converted to lua.

thanks,

sjc
http://www.thinkscripter.com/indicator/ ... ncy-ratio/

[Apprentice]

incrementalTotalChang = math.abs(median - median[-1]);
NetChange =median -median[length];
TotalChange =sum(incrementalTotalChange, length);
ERatio = (NetChange/TotalChange) * 100;
Average = Avg of ERatio

KER.lua

(4.83 KiB) Downloaded 950 times

[Apprentice]

Bump Up.

[Apprentice]

The indicator was revised and updated.