Effort vs. Result

The law of effort versus result is quite tricky to work with in the real world, but it is another great contribution from Richard Wyckoff. We have found it especially valuable as a tool to signal a possible change in trend in the near future when preceded by ending action of some kind. Divergences between volume and price often signal a change in the direction of a price trend. For example, when there are several high-volume (large effort) but narrow-range price bars after a big selloff with the price trading in a narrow range (big effort/little result), this suggests that big money is buying in anticipation of a change in trend.

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Effort vs. Result

Effort vs Result – Turning Points

January 17, 2018-8:24 am traderscott 15

Effort vs result has been discussed many times. The way I use it is at turning points – only. It is corroborating evidence. I used it in December 2015 to buy gold into that huge...

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Effort vs. Result

Panic Buy With Effort vs Result #1

January 4, 2018-1:04 am traderscott 1

MSRT has been one of the strongest stocks in the strongest, by far (for now), sector in the market – pot stocks. Today there was a panic selloff, and there is always a very tradeable...

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Effort vs. Result

Market Update for This Week

August 21, 2017-8:33 am traderscott 0

The volatility has picked up, and it was so incredibly low/complacent for so long that people actually think this is a big deal. This is what happens when it’s been so quiet for so long,...

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Effort vs. Result

Shortening of Thrust Gold 2015

July 11, 2017-1:22 am traderscott 0

Shortening of thrust (SOT) is another great tool to show that a market/stock is becoming less weak/more strong, even as it’s falling. The EA at each thrust low in itself is a strengthening process. And...

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Effort vs. Result

Change of Character

May 28, 2017-1:24 am traderscott 16

Sometimes we need to make this, meaning going over (studying) the charts, much simpler. So just stepping back and viewing charts from a trend change in character is very helpful. We’ll take a look at...

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Effort vs. Result

Adding Up Signs of Strength

April 1, 2017-5:19 pm traderscott 4

There are different types of signs of strength, some on the upside, some to the downside. The downside ones, like springs, are actually more important. But they all have one thing in common – they...

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Effort vs. Result

USRM Daytrading

March 30, 2017-2:03 pm traderscott 0

Effort vs. result is a pretty profound way to view markets. It is a great warning indicator for a change of character in a market or stock. This can be used on any time frame....

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Approach

Be a Winner/Video

March 13, 2017-11:22 pm traderscott 5

I don’t use any moving averages, as I would rather buy into a sell stop run, and then sell at the 50 day, and let someone else take it from there. Certainly a possibility of...

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Accumulation / Distribution

Effort vs. Result Video/TLT

February 26, 2017-1:45 am traderscott 0

Effort vs. result is a powerful concept, but like everything in markets, we have to know when to use certain tools most effectively. Most people plow their methods into any technical situation. They’re basically forcing...

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