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.
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.
The number of bars used in coloring algorithm (see the AssignNormGradientColor article for details).
||The number of bars used in SMA calculation.|
||The Ease Of Movement plot.|
||The zero level.|
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.