Alpha Jensen is one of useful technical indicator used in forex technical analysis. This indicator can become a good friend of most traders if used correctly. This indicator called after its developer Michael Jensen.

This indicator is the average investment return of more than the interest rate risk; beta multiplied by the benchmark yield above the risk-free rate. Positive Jensen Alpha successful business development shows a negative alpha means poor performance. The period of an Alpha should be responsible for reviewing the long-term is three years and more.

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From ForexRealm
Jensen Alpha indicator is investment’s average return exceeding the risk free rate; Beta multiplied by the benchmark’s average return exceeding the risk free rate.
(full article)

From NetFlix
A risk-adjusted performance measure that represents the average return on a portfolio over and above that predicted by the CAPM, given the portfolio’s beta and the average market return. (full article)