Ease Of Movement

Ease of movement indicator is a price and volume study that shows the relationship between volume and price change. This indicator shows how much volume is required to move prices.

High ease of movement values occur when prices are moving upward on light volume. Low ease of movement values occur when prices are moving downward on light volume. If prices are not moving, or if heavy volume is required to move prices, then the indicator will also be near zero.

A buy signal is indicated when the ease of movement crosses above zero, because this shows that prices are moving up more easily. A sell signal is indicated when the ease of movement crosses below zero because this means that prices are moving down more easily.

The ease of movement indicator is normally plotted together with a moving average

• Number of periods to use in calculating ease of movement indicator
• Number of periods to use in calculating corresponding moving average
• Value to use as basis for calculation (open, low, high, close, adjusted close)