Efficiency ratio

What does Efficiency ratio measure?

How directly the price got to where it is. 1 means a straight, clean trend; near 0 means it wandered a lot to end up in the same place.

How is Efficiency ratio calculated?

Take the straight-line distance from the close 10 candles ago to today's close, and divide it by the total distance actually travelled — the sum of every candle-to-candle move in that window.

Written by reading the engine’s real computation, not a textbook — where the two differ, the page describes what actually runs.

How do I use Efficiency ratio in a bot?

In the builder, add an indicator of type efficiency_ratio (parameters: length, default 10). Its value becomes an operand you can compare in any entry or exit rule. The engine grades the whole rule honestly: real fills, no look-ahead, half the history held back.

Related indicators

• Elder rayHow far buyers can push above the trend, and how far sellers can push below it.
• Fisher transformA transform that turns gentle price waves into sharp peaks and troughs, so turning points are easier to see and easier to rule on.
• HammerA single candle with a long tail underneath — sellers pushed it down hard and buyers pushed it all the way back.
• Inverse Fisher RSIRSI squeezed into a crisp −1 to +1 signal.

Or browse all 158 indicators in the full library.