"Buy" and "sell" arrows were placed on the chart when the moving average crossed zero. Calculation. To calculate the Ease of Movement indicator, first calculate ...TechnicalAnalysisfromAtoZbyStevenB.AchelisEASEOFMOVEMENTOverviewTheEaseofMovementindicatorshowstherelationshipbetweenvolumeandpricechange.AswithEquivolumecharting,thisindicatorshowshowmuchvolumeisrequiredtomoveprices.TheEaseofMovementindicatorwasdevelopedRichardW.Arms,Jr.,thecreatorofEquivolume.InterpretationHighEaseofMovementvaluesoccurwhenpricesaremovingupwardonlightvolume.LowEaseofMovementvaluesoccurwhenpricesaremovingdownwardonlightvolume.Ifpricesarenotmoving,orifheavyvolumeisrequiredtomoveprices,thentheindicatorwillalsobenearzero.TheEaseofMovementindicatorproducesabuysignalwhenitcrossesabovezero,indicatingthatpricesaremovingupwardmoreeasily;asellsignalisgivenwhentheindicatorcrossesbelowzero,indicatingthatpricesaremovingdownwardmoreeasily.ExampleThefollowingchartshowsCompaqanda14-dayEaseofMovementindicator.A9-daymovingaveragewasplottedontheEaseofMovementindicator."Buy"and"sell"arrowswereplacedonthechartwhenthemovingaveragecrossedzero.CalculationTocalculatetheEaseofMovementindicator,firstcalculatetheMidpointMoveasshownbelow.Next,calculatethe"High-Low"BoxRatioexpressedineighthswiththedenominatordropped(e.g.,1-1/2points=12/8orjust12).TheEaseofMovement("EMV")indicatoristhencalculatedfromtheMidpointMoveandBoxRatio.TherawEaseofMovementvalueisusuallysmoothedwithamovingaverage.«DowTheoryEfficientMarketTheory»ThisonlineeditionofTechnicalAnalysisfromAtoZisreproducedherewithpermissionfromtheauthorandpublisher.BacktoTopContentsPrefaceAcknowledgmentsTerminologyToLearnMoreBibliographyAbouttheAuthorTechnicalAnalysisPriceFieldsChartsSupport&ResistanceTrendsMovingAveragesIndicatorsMarketIndicatorsLineStudiesPeriodicityTheTimeElementConclusionAbsoluteBreadthIndexAccumulation/DistributionAccumulationSwingIndexAdvance/DeclineLineAdvance/DeclineRatioAdvancing-DecliningIssuesAdvancing,Declining,UnchangedVolumeAndrews'Pitch