What this market video covers
Price can travel a long way and end near its start. This historical Amazon IEX replay uses eleven completed five minute closes from October eighth, twenty twenty six, giving ten close to close intervals. The first close is two fifty eight point zero seven. The last is two fifty eight point three six. Absolute net displacement is twenty nine cents. Add the absolute changes of all ten intervals: three dollars seventy eight cents. Divide net displacement by total movement: approximately zero point zero seven seven. That is Kaufman efficiency for this declared window. Direction reversals enlarge the denominator while offsetting in the numerator. The ratio is not a stock return, a winning probability, or the full adaptive moving average. Use the same window and price source when comparing directional efficiency. Historical observed market-data replay. Educational content, not personalized investment advice. Sources: https://www.tradingview.com/support/solutions/43000773012-kaufman-s-adaptive-moving-average-kama/ https://docs.alpaca.markets/us/reference/stockbars #AMZN #EfficiencyRatio #PriceAction #TechnicalAnalysis #Shorts
Use this analysis as general education. Confirm current prices and conditions independently, define invalidation before entry, and size every position for the loss you can actually tolerate.