The Ease of Movement technical analysis
displays the relationship between the volume of a stock
and price change of the same stock. (See also, Equivolume
Each value of the indicator is a combination of the stock's price and
its volume for that period and typically is smoothed with a moving
average before trading rules are applied.
The meta-trading rules applied to the Ease of Movement indicator are
to consider high or low extrema of the Ease of Movement values as
indicating the stock's prices are moving up or down on low
volume. When volume increases (or when prices are in a sideways price
trend), the indicator is near zero.
The trading rules typical to the Ease of Movement is to buy the
stock when the indicator becomes positive, and to sell when the
indicator becomes negative.
EMV_n= MidPointMoven * BoxRation
MidPointMoven = ((Hn + Ln) - (Hn-1
+ Ln-1)) / 2
BoxRation = Vn / (Hn - Ln)
Vn is volume at period n
Hn is the high price at period n
Ln is the low price at period n
Hn-1 is the high price at period n-1
Ln-1 is the low price at period n-1