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.

Main features

• 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 and MN)
• Ready for backtesting (customizable Sessions_Back)
• Customizable parameters (Colors, Line thickness...)
• Very fast calculation
• Available for metaTrader 4 and metaTrader 5

Inputs

• Volume_Method - choose between real and tick volume
• Effort_Index_Period - indicator period
  
• MA_Method - choose between SMA, SMMA, LWMA and EMA
• MA_Period - MA calculation period
  
• Line_Thickness - output line thickness
  
• Histogram_Thickness - output histogram thickness
  
• Color_Average - average histogram color
  
• Color_Result - price histogram change color
  
• Color_Effort - volume histogram color
  

Outputs parameters

• Result - price histogram change value
  
• MA_Result - average price change value
  
• Effort - volume histogram value
  
• MA_Effort - average volume value