The Ease of Movement indicator was developed by Richard W. Arms Jr. and can be used to help determine the strength of trends. It can help show how easy an asset&s price can move up or down.

The Ease of Movement derived values fluctuate above and below a Zero-Line.

When Ease of Movement is above the Zero-Line, this represents a bullish opportunity. This also suggests that the assets price is rising on low volume.

When Ease of Movement is below the Zero-Line, this represents a bearish opportunity. This also suggests that the assets price is dropping on low volume.

Calculation:

Take the difference between yesterday&s average price and today&s average price. That number is then divided by volume.