The Calmar Ratio, also known as the Calmar Ratio or C/M or CMGR, is a tool used by traders and investors in the Forex market to measure the reward to risk ratio of a position. The ratio is calculated by dividing the average annual rate of return on an investment by the maximum drawdown. The higher the ratio, the more favorable the investment is considered for having a higher risk-adjusted profit. The Calmar Ratio helps traders and investors determine which investments offer a better return over risk, and which ones to avoid, making it an important tool for investors in the Forex market.
The Ehlers Center of Gravity Indicator is a technical analysis tool created by John F. Ehlers that helps chartists to identify powerful changes in price momentum and trends. The indicator is based on long and short-term moving averages (MA) and behaves as a momentum oscillator. It is especially helpful for finding support and resistance areas as well as overbought and oversold market conditions. Furthermore, it can be used to detect potential breakouts and to time entries and exits in both trending and ranging markets. By identifying the price momentum shifts and anticipating potential price movements, the Ehlers Center of Gravity Indicator can become an effective trading tool for both novice and professional traders.