Ease of Movement

Creator: Richard W. Arms, Jr.

Scale: 10000

Period: 14

In the Ease of Movement indicator, there are two lines plotted below the chart.

1 – Green line represents EOM

2 – Red line represents the Average

As the Ease of Movement indicator shows the relationship between volume and price, it is used to determine the strength of an underlying trend. On the basis of momentum, Ease of Movement calculates how a price may move up or down.

The Ease of Movement indicator keeps fluctuating around zero.

Prices tend to advance more easily when the indicator is above the zero line, and vice versa when it is below the zero line.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.