PipTick Effort Index indicator is based on the work of Karthik Marar, volume spread analysis trader. It compares the change in price (Result) to the size of volume (Effort) for a certain period of time. By comparing the effort and result we can get more information about the future price movement. Both values are normalized and converted to scale of 0 - 100 % based on a selectable look back period.
The law of effort and result
The law of effort vs. result states that the change in price of a trading vehicle is the result of an effort expressed by the level of volume and that harmony between effort and result promotes further price movement while lack of harmony promotes a change in direction.
The indicator compares the change in price (Result) to the size of volume (Effort)
Works on every timeframe (M1, M5, M15, M30, H1, H4, D1, W1, MN)
Ready for backtesting (customizable Sessions_Back)
Customizable parameters (Colors, Line thickness...)
Very fast calculation
Available for MT4 and MT5
Volume_Method - Allows to choose between real and tick volume
Effort_Index_Period - Period of the indicator
MA_Method - Allows to choose between SMA, SMMA, LWMA and EMA
MA_Period- Period of MA calculation
Line_Thickness - Thickness of output line
Histogram_Thickness - Thickness of output histogram