TOPGLOV: Effort versus Results

Author: Kelvin Yam

Effort vs. Result is one of the three Wyckoff laws.

If the higher volume shows an increased effort to go up, we would expect the extra effort to result in higher prices. If it does not, then there must have been something wrong. This principle is known as effort versus results. (Tom Williams, 2005)

Bar A - 730k units, range 0.10, up 0.03.
Bar B - 1.5mil units, range 0.23, up 0.21.

This clearly shows that the effort, shown by higher volume, was followed by a positive result, which is wider range and higher price. Since the volume is not high, medium to be exact, this shows that the supply was little, as compared to the bar on 23rd Dec. Price can only go up and form a bull trend when there's no supply.