You can now download the Efficiency Ratio Directional with Levels MT5 Indicator for free on AtoZ Markets indicators gallery.
The Efficiency Ratio (ER) was first presented by Perry Kaufman. The indicator is calculated by dividing the price change over a period by the absolute sum of the price movements that occurred to achieve that change.
The resulting ratio ranges between 0 and 1 with higher values representing a more efficient or trending market.
Currency Pair: any
How to trade with Efficiency Ratio Directional with Levels MT5 Indicator?
This version shows the direction and is adding levels of criteria to estimate if the market is trending or ranging. That way the indicator becomes a tool not only to show if the market is trending but to show the direction of the market as well.
To help the estimation, a smoothing option is added. With very mild smoothing, it is much easier to estimate the trend and a lot of false signals are avoided. To avoid smoothing, set the smoothing period to <= 1.
How to download and install an indicator?
In order to install the indicator on your MT5 platform, you need to follow these steps:
- Click on the “Download Indicator” button located at the bottom of the screen.
- Save the file to your computer.
- Extract and move the files into the MT5>Indicator folder of the MetaTrader5 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select the “Efficiency Ratio Directional with Levels MT5 Indicator” template to apply it on the chart.
Note: This indicator was developed by Jack. AtoZ Markets does not carry any copyrights over this trading tool.