Kaufman Efficiency Ratio Indicator
MT4Also Available for MT5Kaufman efficiency ratio indicator for mt4 – download free. Trend following mt4 indicator. Trend reversal indicator for mt4. Overbought/oversold mt4 indicator.
Description
The Kaufman Efficiency Ratio indicator for MetaTrader is a technical trading tool that uses a concept known as the Kaufman Efficiency ratio to define the bias of a trend. This intuitive indicator also measures the extremities of the price of an asset.
The indicator is designed to help you identify extreme (overbought/oversold) zones of the price which are marked as 0 and 1. The oversold zone is depicted by level 0 on the indicator, while the overbought zone is represented by 1.
Furthermore, this indicator is beneficial to newbie, intermediate, and advanced traders. It can also be used for different trading styles like scalping, day/intraday, and swing trading.
How to Trade With The Kaufman Efficiency Ratio Indicator
The above screenshot depicts how the indicator would look on your mt4 platform. The indicator is recommended to be used in synergy with price action/other technical indicators.
BUY Signal: Firstly, identify the bias of the market, in this case, a bullish trend. Now, wait for the indicator to interact with the oversold zone. You may then open a BUY/LONG entry using price action (e.g. bullish engulfing, hammer, etc.).
SELL Signal: Firstly, identify the bias of the market, in this case, a bearish trend. Now, wait for the indicator to interact with the overbought zone. You may then open a SELL/SHORT entry using price action (e.g. bearish engulfing, inverted hammer, etc.).
Conclusion
The Kaufman Efficiency Ratio indicator for MT4 is a great trading tool that gives you a clear-cut picture of different market sentiments. Besides, it also helps you to easily identify trending and sideways (ranging) markets. Finally, the indicator is free to download.
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