Effort Result oscillator displays correlation of the price change speed to the maximum volume for the specified time interval.
It has one configurable parameter:
- Period – calculation period
Calculation:
ER = ROC / MaxVol
where:
ROC = 100.0 * (Price / Price[Period]-1) Price = SMA(Close, Period) MaxVol - maximum volume in the Period range
The indicator has a peculiarity: sharp spikes of the oscillator values often forecast a price reversal towards the oscillator reversal
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