The Ease of Movement(EOM) indicator shows how much volume is required to move prices. It was developed Richard W. Arms, Jr., the creator of Equivolume. High EOM values occur when prices are moving upward on light volume. Low EOM 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 also be near zero.
The Ease of Movement indicator produces a buy signal when it crosses above zero, indicating that prices are moving upward more easily; a sell signal is given when the indicator crosses below zero, indicating that prices are moving downward more easily.
Calculation:
MA=MovingAverage
Inputs:
Period = 14
Indicates time period(the number of days for daily analysis, the number of weeks for weekly analysis, etc.).
Moving Average Type = Simple
Indicates the moving average type.
Indicator Type: Market Strength