What Does Ease Of Movement Mean?
A technical momentum indicator that is used to illustrate the relationship between the rate of an asset’s price change and its volume. This indicator attempts to identify the amount of volume required to move prices. Generally a value greater than zero is an indication that the stock is being accumulated (bought) and negative values are used to signal increased selling pressure.
A high positive value appears when prices move upward on low volume. Strong negative numbers indicate that price is moving downward on low volume.
TheEase of Movement Indicator was developed to show the link between volume and price change and it demonstrates how much volume is needed for changing prices.
TheEase of Movement indicator is used to show the amount of volume that is necessary to move price. Buy and sell signals are also generated by this indicator.
1. High Ease of Movement reading signals that prices rose on low volume and that little volume will be required to change the price of the stock or futures contract in the near term.
2. Low Ease of Movement reading signals that prices fell on low volume and that little volume will be required to change the price of the stock or futures contract in the near term.
3. Ease of Movement reading around zero signifies that much volume is required to move the price of the stock or futures contract in the near term.