The Ease of Movement indicator can be a valuable tool for traders, providing insights into the relationship between price movement and volume, and helping them identify potential trend reversals and confirm breakouts to make more informed trading decisions
1 minute
Introduction
The Ease of Movement (EMV) is a crucial tool in technical analysis that gauges how easily prices can move in a particular direction. It considers both price and volume to assess the strength of buying or selling pressure behind price movements. To calculate EMV, the change in price is divided by the volume of shares traded. The resulting value is then smoothed using a 14-day moving average.
