The Effort and Result indicator is based on the work of Karthik Marar; a volume spread analysis trader.
It compares a price change (Result) to the volume size (Effort) for a certain period.
By comparing the effort and result, we can get more information about the future price movement. Both values are normalized and converted to a scale of 0 – 100 % based on a selectable look-back period.
This indicator is also known as the Effort Index.
The law of effort vs. result states that the change in the 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. In contrast, a lack of balance promotes a change in direction.