Ease of movement,
Definition of Ease of movement:
The Ease of Movement indicator, also known as the Ease of Movement Value (EMV) indicator, is an oscillator that was developed by Richard W. Arms, Jr. to help traders identify the "ease" of price movement. Since it looks at both price volatility and volume, many traders find it useful when assessing the strength of a trend.
An evaluation method to determine how an assets worth is related to the amount the asset is available for on the trading market.
Richard Arms' Ease of Movement indicator is a technical study that attempts to quantify a mix of momentum and volume information into one value. The intent is to use this value to discern whether prices are able to rise, or fall, with little resistance in the directional movement. Theoretically, if prices move easily, they will continue to do so for a period of time that can be traded effectively.
How to use Ease of movement in a sentence?
- This generates a volume-weighted momentum indicator.
- The calculation subtracts yesterday's average price from today's average price and divides the difference by volume.
- This indicator calculates how easily a price can move up or down.
Meaning of Ease of movement & Ease of movement Definition