Richard W. Arms’ Ease of Movement indicator is a momentum oscillator that shows the direction of a trend by volume. The indicator plots signal lines using several calculations based on moving averages. The indicator plots the signal lines and tells you the relationship between price and volume.
The most important indicator of the Ease of Movement indicator is the zero line. When the price moves above the zero line, it indicates lower volume on the upside. Conversely, if price falls below the zero line, it indicates lower volume on the downside. This indicator is best used in all time frames. It is best to use it over a longer time frame.
Ease of movement indicator buy/sell signals
Shows buy and sell signals. Traders must check the signal line between the BUY or SELL signals. If the signal line is above zero, it means that there is a large upside volume. At this point, the trader needs to exit the long position or go short.
If the indicator line is below zero, the trader may enter a long position. The ease-of-movement indicator tells traders about the market trading volume. Traders often use it together with moving averages to confirm their signals.
Conclusion
The Ease of Movement indicator is a momentum oscillator that plots a zero line to tell you how much volume is left. You can also download the indicator for free from our website.
