I have revisited the indicator and slightly modified, by using a different formula for the signal line. The indicator and the chart are attached below.

Short explanation of the indicator.

A market is trending or efficient, if it does not move forth and back all the time. To find out whether it is smoothly moving in one direction, Perry Kaufman used the absolute amount of the n-bar momentum and compared this to the sum of the absolute amounts of the last n 1-bar momentum. A random walk is unlikely to produce 10 steps in the same direction, a trending market will. Here are the formulae:

signal : absolute amount of the last n-bar price move (n-bar momentum)
noise: sum of the absolute amounts of the last n 1-bar price moves (1-bar momentum)
efficiency ratio: signal/noise * 100

I have slightly modified the formula by substituting the momentum with the balanced momentum (see download section). I have then added a signal line, which is an EMA of the efficiency ratio based on a smoothing period.

Could "Up Trend" "Down Trend" "Chop" labels be added to appear in left corner of chart??

This is possible, but would require a (simple) custom plot. I will not have the time to do that during the next days. Maybe you could try this thread

Want your NinjaTrader indicator created, free? Hey guys, I thought many of you would enjoy and benefit from this thread. My intention is to have each poster reply and describe in as much detail as possible an indicator they want created for NinjaTrader. The programmers on the forum (there are many), …