The Ease of Movement indicator shows the relationship
between volume and price change. This indicator shows how much volume is required to move
The Ease of Movement indicator was developed Richard W.
Arms, Jr., the creator of Equivolume.
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 indicator will also be near zero.
The Ease of Movement indicator produces a buy signal when
it crosses above zero, indicating that prices are moving upward more easily; a sell signal
is given when the indicator crosses below zero, indicating that prices are moving downward
The following chart shows a 14-day Ease of Movement
indicator. A 9-day moving average was plotted on the Ease of Movement indicator.
To calculate the Ease of Movement indicator, first
calculate the Midpoint Move as shown below.
Next, calcualte the "High-Low" Box Ratio
expressed in eighths with the denominator dropped (e.g., 1-1/2 points = 12/8 or just 12).
The Ease of Movement ("EMV") indicator is then
calculated from the Midpoint Move and Box Ratio.
The raw Ease of Movement value is usually smoothed with a