Definition
Ease of movement is an indicator used in technical analysis to relate an asset’s price change to its volume. Ease of Movement was developed by Richard W. Arms, Jr. and highlights the relationship between volume and price changes and is particularly useful for assessing the strength of a trend. High positive values indicate the price is increasing on low volume: strong negative values indicate the price is dropping on low volume. The moving average of the indicator can be added to act as a trigger line, which is similar to other indicators like the MACD.
Ease Of Movement
What is ‘Ease Of Movement’
A technical momentum indicator that is used to illustrate the relationship between the rate of an asset’s price change and its volume. 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.
A high positive value appears when prices move upward on low volume. Strong negative numbers indicate that price is moving downward on low volume.
Explaining ‘Ease Of Movement’
A moving average of the indicator can be added to act as a trigger line, which is similar to other indicators like the MACD. Transaction signals can be generated when the indicator crosses over a 9-day moving average, but are generally made when the indicator crosses over the zero line. Traders use the smoothed version of this indicator in an attempt to eliminate false signals.
Further Reading
- Using job embeddedness factors to explain voluntary turnover in four European countries – www.tandfonline.com [PDF]
- Did financial liberalization ease financing constraints? Evidence from Indian firm-level data – www.sciencedirect.com [PDF]
- Ease of movement and sector affiliation as moderators of the organizational and career commitment: Turnover intentions link – www.ingentaconnect.com [PDF]
- Comparing PETTLEP imagery against observation imagery on vividness and ease of movement imagery – www.tandfonline.com [PDF]
- Financial repression to ease fiscal stress: turning back the clock in the eurozone? – papers.ssrn.com [PDF]
- Invested interests: the politics of national economic policies in a world of global finance – www.jstor.org [PDF]
- How to Ease Dual Pressures of RMB Exchange Rate [J] – en.cnki.com.cn [PDF]
