Outline
Add an outline on all objects of the layer having the effect. This won't work well if shown on top of the background color of the scene. Be sure to use an object acting as a background or a floor.

The outline follows the visible (non-transparent) pixels of the image, so it works well on sprites with transparency. Set its thickness and its color to match your art style. Applied to a single object, this is a common way to highlight the currently selected or hovered item.
Note
This effect only works on 2D layers and objects.
Reference
All effects are listed in the effects reference page.