Efficiency Ratio 10Cross-asset & regime

Timeframe M1 · unit ratio

What it measures

Measures how efficiently price travels from point A to point B over 10 bars. Divides the net displacement (straight-line distance) by the total path length (sum of all bar-to-bar moves).

How Janira reads it (bullish vs bearish)

Range 0-1. Values near 1.0 mean price moved in one clean sweep with almost no retracement - high efficiency, strong directional conviction. Values near 0 mean price travelled far in aggregate but returned close to its starting level - low efficiency, choppy or oscillating action. A midpoint near 0.5 indicates mixed behavior.

In plain language

Think of a bee flying from flower to flower. The efficiency ratio compares the direct flight distance to the total distance actually flown, including all the detours. A bee going straight scores near 1; one circling scores near 0.

Scenarios

ER > 0.7: Price has been moving with high directional efficiency over the past 10 bars; trending structure is dominant.
ER 0.4-0.7: Mixed efficiency; some directional bias but with notable counter-moves; regime is transitional.
ER < 0.3: Very low efficiency; price oscillates heavily and net movement is small relative to total activity; choppy market.
ER rising from < 0.3 to > 0.6: Potential breakout from choppy action into a more directional phase.

More cross-asset & regime indicators

Choppiness Index 14 Hurst Proxy 20 Trend Strength 20 Up/Down Ratio 20 Consecutive Higher Highs 10 Autocorrelation Lag-1 (20 bars)Range Expansion 14 Trendiness Score

Janira computes Efficiency Ratio 10 deterministically from live price action, the same way for every reading - no discretion, no hidden weighting. This page explains the method; it is not a live reading and not advice.