EaseOfMovement (Function)

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The EaseOfMovement function calculates the relationship between volume and price change using the Market Facilitation Index (MFI) function.

Syntax

EaseOfMovement

Returns (Double)

A positive or negative number for the current bar.

Parameters

None.

Remarks

The EaseOfMovement function tries to gauge how easily prices are moving up or down and is usually smoothed with a moving average.

High positive EaseOfMovement values occur when prices are moving upward on light volume. Low negative EaseOfMovement values occur when prices are moving downward on light volume. If prices are not moving, or if heavy volume is required to move prices, then the indicator will be near zero.

Example

Assigns to Value1 and plots the 10 bar average of the EaseOfMovement value:

Value1 = Average(EaseOfMovement, 10);

Plot1(Value1, "EOM");

Reference

Richard W. Arms, Jr. developed the Ease of Movement concept.

Colby, Robert W. and Thomas A. Meyers. The Encyclopedia of Technical Market Indicators. Dow Jones - Irwin. Homewood, IL. 1988.