Movement Efficiency

What it does

Movement Efficiency measures how much of the market's total movement turns into real progress. Is price advancing cleanly toward a destination, or thrashing around going nowhere? It also penalizes candles with big wicks and small bodies, which look exciting but don't move price.

How to read it

1. Green background — Trend zone: price is advancing cleanly. Trend-following setups work best here.
2. Red background — Chop zone: lots of movement, little progress. Expect whipsaws and failed breakouts.
3. No background — Transition: the market is shifting. Wait for the next triangle.
4. Triangles mark an efficient move up (green), an efficient move down (red) or the start of chop (orange).

When to use it

• To decide whether to trade with a trend tool or stay out.

When not to use it

• As an entry signal on its own: it describes the quality of the move, not the timing.