Description
The Ease Of Movement study is a technical indicator quantifying relationship between volume and price change.
It is calculated using the following algorithm.
-
Change of median price relative to previous bar is multiplied by trading range.
-
The product is divided by volume.
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Final result is SMA of the ratio derived after the previous step.
It is considered a Buy signal when the Ease Of Movement plot crosses above zero. Conversely, crossing below the zero level suggests the Sell signal.
Input Parameters
| Parameter | Description |
|---|---|
color norm length
|
The number of bars used in coloring algorithm (see the AssignNormGradientColor article for details). |
sm length
|
The number of bars used in SMA calculation. |
Plots
| Plot | Description |
|---|---|
EOM
|
The Ease Of Movement plot. |
ZeroLine
|
The zero level. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.