Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers, Unverified Users
Joined: 3/27/2006(UTC)
Posts: 41
Location: Singapore
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Hello Members,
Anyone has any idea what is this "Efficiency Ratio" and how can it helps together with other indicator such as Relative Strength Index for identifying investment in stock purchases?
Is there any available formula of "Efficiency Ratio" for MetaStock?
Appreciate and thanks for your advice.
...Roy
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Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 11/25/2006(UTC)
Posts: 79
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I have one form the net:
Efficiency Ratio = Net PriceChange / Sum of price changes as positive values
MS formula:
TimePeriods := Input("Time periods",1,10000,10);
(Abs(CLOSE - Ref(CLOSE,-TimePeriods))) /(Sum(Abs(CLOSE-Ref(CLOSE,-1)),TimePeriods))
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Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 8/13/2005(UTC)
Posts: 170
Thanks: 7 times
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{Market Efficiency Ratio}
pds:= Input("Periods",3,200,8);
Speed:= C - Ref(C, -pds);
Volatility:= Sum(Abs(C - Ref(C, -1)),pds);
Efficiency:= Speed / Volatility;
MER:= Mov(Mov(Efficiency, 5,E),3,E);
MER;
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers, Unverified Users
Joined: 3/27/2006(UTC)
Posts: 41
Location: Singapore
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Dear wblam & uasish,
Thank you both with the formula for Metastock. Appreciated it.
I had tried both and some times I got a screen prompted me "Custom Indicators Math Errors" with division by zero: 53. Should I ignore it? BTW, I stick with a period of 8.
Once again, thanks.
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