Ease of Movement: how far price moved per unit of volume, smoothed with a 14-bar SMA, around zero.
Overview
Ease of Movement (EOM), by Richard Arms, shows how easily price moves, in its own pane. High positive values mean price rose on light volume; large negative values mean it fell easily.
The line is green above zero and red below.
How it works
Distance moved = (high + low) / 2 - (previous high + previous low) / 2. Box ratio = (volume / 10000) / (high - low). One-bar EMV = distance / box ratio. EOM = SMA(EMV, 14).
The divisor (10000) only scales the line.
How to use it
- Some traders watch EOM above zero as price rising with little effort.
- Use zero-line crosses as a change in direction of easy movement.
- Look at values near zero as heavy volume for little movement.
- Pair it with price structure to judge breakouts.
These are ways some traders read it, for learning. They are not trade signals.
Settings
| Setting | Default |
|---|---|
| Settings | |
| LengthNumber of bars in the simple moving average smoothing the 1-bar Ease of Movement values. | 14 |
| DivisorVolume scaling constant of the box ratio; larger values scale the oscillator up. 10000 is the conventional default. | 10000 |
| Style | |
| EOM LineColor of the line when it sits exactly at zero. | #787b86 |
| Above ZeroColor of the line and fill while Ease of Movement is positive. | #089981 |
| Below ZeroColor of the line and fill while Ease of Movement is negative. | #f23645 |
Alerts
You can alert on its line crossing a value or the candle close (from the chart's + menu); checked while ZoroCharts is open.
Notes and limits
- It needs volume data; on symbols without volume it shows nothing useful.
Education only. Not financial advice. Indicators mark what happened on the chart; they do not predict what price will do. Trading futures, forex, crypto and other markets carries a high level of risk and may not be suitable for everyone.