Online Trading Concepts

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Ease of Movement

The Ease of Movement indicator is used to show the amount of volume that is necessary to move price. Possible buy and sell signals can be generated by this indicator.

  1. High Ease of Movement reading signals that prices rose on low volume and that little volume will be required to change the price of the stock or futures contract in the near term.
  2. Low Ease of Movement reading signals that prices fell on low volume and that little volume will be required to change the price of the stock or futures contract in the near term.
  3. Ease of Movement reading around zero signifies that much volume is required to move the price of the stock or futures contract in the near term.

The Ease of Movement calculated value is usually smoothed with a 14-period moving average.

The chart below of the E-mini Nasdaq 100 Futures contract shows an example of the Ease of Movement technical indicator, with possible buy and sell signals labeled:

ease of movement technical analysis and volume analysis

Ease of Movement Possible Buy Signal

A trader might buy when the Ease of Movement indicator crosses above the zero line.

Ease of Movement Possible Sell Signal

A trader might sell when the Ease of Movement indicator crosses below the zero line.

As with most indicators, it is advised that a stock or futures trader use other technical analysis indicators to confirm potential buy or sell signals.

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