Ease Of Movement

The Ease of Movement indicator uses price and volume changes to determine the rate at which the market price is able to move up or down. The index shows high values when prices are moving upwards with modest volumes, low values when prices are moving lower with reduced volumes. The index will be close to zero if the prices move little, or if they move but with high volumes as if, precisely, to move them it would need an important mass of exchanges. The signals provided by the Ease of Movement indicator give a BUY signal when it moves above zero and a SELL signal when it pierces zero downwards. That is, when they indicate that prices begin to move more easily.