Ease of Movement Indicator: Definition | Ease of Movement

The Ease of Movement indicator is a volume-based indicator which measures the relationship between price and volume and display that ...EaseofMovementIndicator:DefinitionMomentumindicatorsEaseofmovement(EMV)momentumindicatorshowsthelinkbetweentherateofchangeinthepriceofanassetanditsvolume.Itisbesttouseitforthedailychartandlongertimeframes.Justasitsnameimplies,thebiggerthemagnitudeoftheindicator,theeasierthepricemovement–thelargerthetrend.TheEaseOfMovementindicatorgivesaclueonhoweasilypricecanmoveupordown.Itisavolume-weightedmomentumindicator.Whatyou'lldiscoverinthisarticle++show++1WhatistheEaseofMovementindicator?2Whatdoestheindicatortelltraders?3HowtousetheEaseofMovementindicator?3.1Openingaposition3.2Closingaposition4WhattodowiththeEaseofMovement?4.1Option1–Keepeverythingsimple4.2Option2–Useamovingaverage5BiggestmistakestoavoidwiththeEOMindicator6Pros&ConsoftheEaseofMovementindicator7ConclusionTheEMVhasanuncannyabilitytodetectpriceinefficienciesintheabsenceofmarketvolume.Itoftenappearsasacurvedline,whichbouncesaboveandbelowzero.WhenevertheEMVisabovezero,itconveysthepriceisincreasingwithrelativeease.Conversely,whentheEMVisbelowzero,thesecurityisdecreasing;thus,thenameoftheindicator:EaseofMovement.Abiggerpositivevaluemeanspricemovingupwardondisproportionatelylessvolume.Ontheotherhand,abiggernegativevalueshowspricegoingdownondisproportionatelylessvolume.Accordingly,traderscanusethisindicatortogetasenseofhowmuchvolumeisneededtoleadtopricemovement.Anindicatorvalueofmorethanzeroshowsthattradersarebuyingtheasset.Conversely,avalueoflessthanzerogenerallyshowsthattradersaresellingtheasset.WhatistheEaseofMovementindicator?TheEaseofMovementindicatorisavolume-basedindicatorwhichmeasurestherelationshipbetweenpriceandvolumeanddisplaythatrelationshipasanoscillatorthatfluctuatesbetweenpositiveandnegativevalues.TheeaseofmovementindicatorfluctuatesaboveandbelowazeroLine.Thishelpsquantifyhoweasythepricemoves.Abasicunderstandingisthatpricesgrowwithrelativeeasewhentheindicatorisinposit


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