Trends/Volume and money flow

Ease of movement

How easily price moves, comparing the midpoint change with the volume needed to produce it.

Volume and money flowBest on 3M, 6MAlso called EMV
Ease of movement diagramIllustration of the ease of movement shape. It is a sketch, not real price data.Ease of movement
Illustration of the ease of movement shape. It is a sketch, not real price data.

What it shows

Richard Arms's ease of movement divides the change in the bar's midpoint by a 'box ratio', which is volume divided by the bar's range. A big rise on low volume gives a high value. A small rise on high volume gives a low value.

It is smoothed with a 14-bar average.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

  1. Midpoint move = midpoint today − midpoint yesterday.
  2. Box ratio = (volume ÷ 100,000,000) ÷ (high − low).
  3. EMV = midpoint move ÷ box ratio.
  4. Smooth with a 14-bar average.

Starting values: Smoothing 14 bars. These are proposed and will be tuned on real price data before launch.

How to read it

  • The panel shows EMV.
  • High positive: price rose with little volume.
  • Low or negative: fell, or rose with heavy volume.

Status labels you may see

LabelWhat it means
PositiveEMV above zero.
NegativeEMV below zero.
Near zeroWithin 5% of its range.

What cancels it

Nothing cancels it.

What traders check next

  • Zero crosses.
  • Volume levels.
  • Price trend.

Limits

  • The scale factor is arbitrary.
  • Noisy.
  • Rarely used.

Try it in forecastviz

  • Open any ticker and choose Volume and money flow → Ease of movement in the left menu.
  • Switch between 3M, 6M to see how the picture changes.
  • Compare with Force index and On-balance volume on the same chart.

Questions

What is 'ease'?

Price moving a lot without much volume behind it.

Is it common?

Not very.

Related trends

Further reading

  • Murphy, Technical Analysis of the Financial Markets
  • Granville, Granville's New Key to Stock Market Profits
  • Pring, Technical Analysis Explained
  • Achelis, Technical Analysis from A to Z

Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.