Effort vs. Result
Volume Price Analysis glossary · Validation Vs. Anomaly (Spread & Volume)
Definition
Wyckoff's third law: volume (effort) should be proportionate to price movement (result). Divergence signals an anomaly.
Effort vs. Result in plain English
This is a simple cause-and-effect rule: the effort (volume, how much trading took place) should produce a matching result (a real move in the price). It's like pedaling a bike — hard pedaling should get you going faster; if you pedal furiously and barely inch forward, you'd suspect the brakes are on. In trading, when heavy volume produces almost no price gain, that mismatch (a "divergence") is a red flag that hidden sellers are absorbing the buying, or vice versa. Spotting that anomaly early is exactly what a volume-price analyst is hunting for.
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