The Ease of Movement (EMV) indicator is a technical analysis tool that assesses the relationship between price and volume to gauge the ease with which a security's price is moving. Developed by Richard W. Arms Jr., it helps traders identify potential trend changes or reversals. The EMV considers both price and volume, measuring how much effort (volume) is required to move prices. A rising EMV suggests that prices are moving easily, indicating a strong trend. At the same time, a declining EMV may signal potential weakness or the need for higher volume to sustain price movements.
Ease of Movement - Technical Analysis from A to Z
The Ease of Movement indicator shows the relationship between volume and price change. As
with Equivolume Charting, this indicator shows how much volume is required to move prices. High Ease of Movement values occur when prices move upward on light volume. Low Ease of Movement values occur when prices move downward on light volume. If prices are not moving, or if a heavy volume is required to move prices, then the indicator will also be near zero. The Ease of Movement indicator produces a buy signal when ..
Volume - Technical Analysis from A to Z
Volume is the number of shares (or contracts) traded during a specified time frame (e.g., hour, day, week, month, etc.). The volume analysis is a basic yet essential element of technical analysis. The volume provides clues as to the intensity of a given price move. Volume can help determine the health of an existing trend. A healthy up-trend should have higher volume on the upward legs of the trend and lower volume on the downward (corrective) legs. A healthy downtrend usually has a higher volume on the downward legs of the trend and a lower volume on the upward (corrective) legs.
Ease of Movement - Technical Analysis from A to Z