Effort-Result Oscillator: Price Rate of Change Scaled by Maximum Volume

Summary

The Effort-Result oscillator is described as a measure combining the speed of price change with the maximum volume observed over a chosen period. Its sole configurable input is the calculation period. The calculation first uses a simple moving average of closing prices, measures that smoothed price’s rate of change relative to its value one period earlier, and divides the result by the period’s maximum volume.

The document says sharp oscillator spikes often precede price reversals in the direction of the oscillator’s turn. It provides no chart, test results, market, timeframe, or rules for identifying spikes and acting on them. The reversal observation is therefore a qualitative claim rather than evidence of a validated signal; the note also does not discuss scaling, volume units, or risk controls.

Key ideas

• The indicator combines smoothed price rate of change with maximum volume over a chosen period.
• Its calculation period is the only configurable input described.
• The source claims sharp spikes may precede reversals toward the oscillator’s turn.
• No empirical test, market context, or trading rules are supplied.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.