FREE INDICATOR: POLARIZED FRACTAL EFFICIENCY

Looking for something other than a moving average to help determine not only a trend's strength, but also it's direction? Try PFE!

PFE was developed by Hans Hannula that was invented to determine price efficiency over a user-defined time period.

The Polarized Fractal Efficiency indicator is, in the essence, an exponentially smoothed ratio of the length of two lines: (1) of a straight line between today’s close and the close Period days ago, and (2) of a broken line connecting all Close points between today and Period days ago. The indicator output varies between -100 and 100. The theory behind this indicator is that if it is >50 (or <-50) then the market is likely to reverse its trend from positive to negative (or from negative to positive).

Other usage:
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. 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.

As with all indicators, finding something that works well along side this would be the most beneficial way to use it.
Perhaps something like the Choppiness Index (related idea below) could do the trick.

Grab the source code here: pastebin.com/TyTuWQ3s
Installation video by ChrisMoody here : blog.tradingview.com/?p=265