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| **Outputs** | Single series (Efficiency Ratio) |
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| **Output range** | $0$ to $1$ |
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| **Warmup** | `period + 1` bars |
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### TL;DR
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- ER measures the signal-to-noise ratio of price movement: net directional change divided by total path length.
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- Not available and therefore not validated against any other TA library
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> "The best trades move in a straight line. The worst ones wander. ER tells you which kind you're looking at." -- Perry Kaufman
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## Historical Context
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Perry Kaufman introduced the Efficiency Ratio in *Trading Systems and Methods* (1995) as part of his Adaptive Moving Average (KAMA) framework. The idea was straightforward: an ideal trend indicator should react quickly in trending markets and slowly in choppy ones. ER provides the adaptive signal that tells KAMA how to behave.
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