PipTick Effort Index MT4

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