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