Ease of Movement (EMV)

Overview

The Ease of Movement (EMV) indicator, developed by Richard W. Arms Jr., is a technical study that attempts to quantify a mix of momentum and volume information into one value. The intent is to use this value to discern whether prices are able to rise or fall with little resistance in the directional movement. The core principle is that when prices move easily with low volume, it suggests minimal resistance and the trend is likely to continue. Conversely, when prices struggle to move despite high volume, it indicates resistance and potential exhaustion.

EMV highlights the relationship between volume and price changes by comparing the current period's midpoint with the prior period's midpoint (distance moved) and dividing by a box ratio that incorporates volume and the high-low range. The result is an oscillator that fluctuates around a zero line: positive values indicate prices are advancing with relative ease, while negative values show prices declining easily. The indicator is typically smoothed with a 14-day moving average to reduce noise and improve signal accuracy, creating what is essentially a volume-weighted momentum line that reveals the efficiency of price movement.

Interpretation & Trading Signals

Example Usage

Code examples will be available once the Rust implementation is complete.