Ease of movement IndicatorThe 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. 
When the oscillator crosses above 0 it is suppose to be a buy signal. When it crosses below 0 it is suppose to be a sell signal. Combining this indicator with other indicators can give you a good idea of where a stock is headed and how well it will perform in the future. Other Oscillators Here is a list of other oscillators that can be used to tell if a stock is overbought or oversold. Chaikin Money Flow - an indicator that looks at accumulation/distribution Accumulative Swing Index - This index attempts to show the longer term trends of a stock MACD - A common oscillator |
