Ease of Movement [EMV]

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The Ease of Movement function determines the relative ease of movement by which the price of a security is changing by analyzing the amount of volume associated with price changes. Parameters ------------------ High          The high price of the security for each given day. Low           The low price of the security for each given day. Volume      The number of shares of the security that were traded during each given day. Note that while this function is intended for use with these specific values, any values can be used for these parameters, including other price values and averaged prices. Indicator Value ------------------------ The Ease of Movement indicator determines whether the price of a security is moving easily, or if it is encountering resistance. For example, if most trades during a day were buys causing the price to rise, then the stock is said to have a high ease of movement. However, if the stock was both bought and sold resulting in a small overall movement in price, the stock would have an ease of movement close to zero. Value    Meaning --------------------------- > 0       High ease of movement, the security is primarily being bought.   0         No ease of movement, the security is being both bought and sold. < 0       Low ease of movement, the security is primarily being sold. The value is typically smoothed using a moving average. Usage ----------- The smoothed Ease of Movement indicator can be used to determine general trends in how the money is flowing into or out of a security. The higher the ease of movement, the more that money is flowing into a security. Entry/Exit systems can be created based on when the smoothed value of this indicator crosses zero. See the sample entry/exit systems for an example using the Ease of Movement indicator. Source ------------ This indicator is based on an entry in "Technical Analysis From A To Z" by Steven B. Achelis. It was originally developed by Richard W. Arms, Jr.