The Ease of Movement (EMV) indicator is a volume-based technical analysis tool used to gauge the ease with which the price moves. It combines price changes and volume to assess the strength of price movements and potential future trends. A positive value suggests upward price movement with relative ease, while a negative value indicates difficulty in pushing prices higher.

Syntax:

EaseOfMovement[N]

Calculation:

The EMV value is calculated using the formula:

EMV = 1000000 * (high - low) / 2 * (high + low - (high[1] + low[1])) / volume
EaseOfMovement = ExponentialAverage(EMV)

Example:

To calculate the Ease of Movement over the last 14 periods, you can use the following code:

myEMV = EaseOfMovement[14]

This will store the 14-period exponential average of the EMV in the variable myEMV.

Interpretation:

• If the EMV value rises above 0, it indicates that the price is moving upward with ease, potentially signaling a buying opportunity.
• If the EMV value falls below 0, it suggests that the price is facing resistance moving higher, which might be a selling signal.

This indicator is particularly useful for identifying periods where price movements are supported by volume, making it easier for traders to understand market dynamics without directly analyzing the volume itself.