Ease of movement Indicator

The Ease of movement Indicator (EMV) is used to give off buy and sell signals for stocks, commodities and anything else that is tradeable. It was first developed by Richard W Arms.

This indicator attempts to highlight the relationship between volume and price movement in order to determine how strong a trend is.

If you were to calculate it you would have to find the midpoint move and the box ratio

Midpoint move=( (Todays High + Todays Low) / 2 ) – ((Yesterdays high +Yesterdays low)/2)

Box ratio = (Volume) / (High – low)

The ease of movement indicator takes both of these ratios into consideration. Luckly for us we do not have to calculate these numbers.

The oscillator is easily put on your chart. Like the example below.