Ease of Movement
Ease of Movement is one of forex technical indicator used in forex technical analysis by many traders. Ease of Movement was developed to show the link between volume and price change and it demonstrates how much volume is needed for changing prices.
A sell signal occurs when the indicator crosses below zero. Here prices are moving downward more easily. A buy signal occurs when it crosses above zero. In this case prices are more easily moving upward.
This indicator attempts to identify the amount of volume required to move prices. Generally a value greater than zero is an indication that the stock is being accumulated (bought) and negative values are used to signal increased selling pressure.
High positive values indicate the price is increasing on low volume: strong negative values indicate the price is dropping on low volume.
Buy when the Ease of Movement indicator crosses above the zero line. Sell when the Ease of Movement indicator crosses below the zero line. As with most indicators, it is advised that a stock or futures trader use other technical analysis indicators to confirm buy or sell signals.
