Definition
Effort versus Result compares relative volume with the price spread, close, and progress achieved. High effort with little result warns that opposing activity is absorbing the move.
Market psychology
When enormous participation cannot move price far, an equally meaningful opposing force may be present.
Recognition rules
- Judge volume relative to recent bars
- Measure spread and directional progress
- Notice high effort with limited result
- Interpret the divergence within the background
Common mistakes
- Comparing volume across unrelated markets
- Treating every divergence as an immediate reversal
Teaching example
Loading OHLCV chart…
Read a text alternative
Public enthusiasm creates exceptional effort late in the trend. Limited follow-through and subsequent weakness show that supply entered the advance.
- Market phase
- Distribution
- Pattern
- Buying Climax
- Timeframe
- D1
What represents result?
The market's movement and close show what the effort accomplished.