LinkedInwithBackgroundTechnicalAnalysisGuidetoTechnicalAnalysisTechnicalAnalysisBasicEducationAdvancedTechnicalAnalysisConceptsTechnicalAnalysisTechnicalAnalysisBasicEducationWhatisEaseOfMovement?RichardArms'EaseofMovementindicatorisatechnicalstudythatattemptstoquantifyamixofmomentumandvolumeinformationintoonevalue.Theintentistousethisvaluetodiscernwhetherpricesareabletorise,orfall,withlittleresistanceinthedirectionalmovement.Theoretically,ifpricesmoveeasily,theywillcontinuetodosoforaperiodoftimethatcanbetradedeffectively.KeyTakeawaysThisindicatorcalculateshoweasilyapricecanmoveupordown.Thecalculationsubtractsyesterday'saveragepricefromtoday'saveragepriceanddividesthedifferencebyvolume.Thisgeneratesavolume-weightedmomentumindicator.HowtheEaseOfMovementIndicatorWorksTheEaseofMovementindicator,alsoknownastheEaseofMovementValue(EMV)indicator,isanoscillatorthat wasdevelopedbyRichardW.Arms,Jr.tohelptradersidentifythe"ease"ofpricemovement.Sinceitlooksatbothpricevolatilityandvolume,manytradersfinditusefulwhenassessingthestrengthofatrend.TheEMVindicatorinvolvesseveraldifferentcalculations,includingsimplemovingaverage:Distance Moved=(High + Low2 − PH + PL2)Box Ratio=(VolumeScale)High − Low\begin{aligned}&\text{DistanceMoved}=\left(\frac{\text{High}\+\\text{Low}}{2}\-\\frac{\text{PH}\+\\text{PL}}{2}\right)\\&\text{BoxRatio}=\frac{\left(\frac{\text{Volume}}{\text{Scale}}\right)}{\text{High}\-\\text{Low}}\\&1\text{-PeriodEMV}=\frac{\left(\frac{\text{High}\+\\text{Low}}{2}\-\\frac{\text{PH}\+\\text{PL}}{2}\right)}{\left(\frac{\frac{\text{Volume}}{\text{Scale}}}{\text{High}\-\\text{Low}}\right)}\end{aligned}​Distance Moved=(2High + Low​ − 2PH + PL​)Box Ratio=High − Low(ScaleVolume​)​​Scaleequals1,000to1,000,000,000dependingontheaveragedailyvolumeofthestock.Themoreheavilytradedthestock,thehigherthescaleshouldbetokeeptheindicatorvalueinsingleordoubledigits.14-Period Ease of Movement=14-Period SimpleMoving Average of 1-Period EMVwhere:PH=Prior High\begin{aligned}&\text{14-PeriodE