The PFE Signals Metatrader 4 forex indicator is a technical tool created by Hans Hannula to define price efficiency over a specified time period.
It is an oscillator that uses an algorithm that is similar to Kaufmann’s AMA, while the PFE stands for Polarized Fractal Efficiency.
The indicator runs a dodger blue line within its own window with zero as the center line.
The strength of the trend in focus is gauged by the position of the indicator’s dodger blue line in relation to the zero center line.
As a general rule, the further the dodger blue line of the PFE indicator is away from zero, the stronger and more efficient the trend in focus is.
The EUR/USD M30 chart below displays the PFE Signals Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the dodger blue line of the PFE Metatrader 4 forex indicator breaks & hovers above the zero center line.
Sell Signal: Go short when the dodger blue line of the PFE Metatrader 4 forex indicator breaks and stays below the zero center line.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the dodger blue line of the PFE Indicator surges below the zero signal level.
Exit sell trade: Close all sell orders if while a bearish trend is running, the dodger blue line of the PFE Indicator rises above the zero signal level.
Tips: The PFE Indicator is also helpful in evaluating the strength of a market trend.
The further its value is away from zero (positive), the stronger the uptrend and when its value is way below (negative) zero, the stronger the downtrend.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (PfePeriod, UseAverage, MaPeriod), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the pfe-indicator.ex4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)