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Ease of Movement Formula
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Formula Reference > Financial Formulas > Ease of Movement Formula



Glossary Item Box

Overview

Enterprise Edition Only Feature.

Ease of Movement deals with the relationship between volume and price change, specifically, it uses volume to indicate how strong a price trend is. Ease of Movement was developed by Richard W Arms.

 

Note
We recommend that you read Using Financial Formulas before proceeding any further. Using Financial Formulas provides a detailed explanation on how to use formulas, and also explains the various options available to you when applying a formula.

 

Figure 1: This chart shows Ease of Movement together with its Exponential Moving Average in the lower chart area. The High, Low and Close prices are plotted in the upper chart area as a stock chart. 

 

Applying Ease of Movement

All formulas are calculated using the FormulaFinancial method, which accepts the following arguments: a formula name; input value(s); output value(s), and parameter(s) that are specific to the type of formula being applied.

Before applying the FormulaFinancial method, make sure that all data points have their XValue property set, and that their series' XValueIndexed property is set to false.

The following table indicates what sort of FormulaFinancial method arguments to use when calculating an Ease of Movement, and also supplies a description of what these parameters mean:   

 

Parameter

Value/Description

Example

Formula Name:

EaseOfMovement

 

FormulaFinancial(FinancialFormula.EaseOfMovement ,Series1:Y,Series1:Y2,Series2:Y","Series3:Y")

Input Values:  Value #1: The value which represents the High price. By default it is the first Y value in the stock chart.

Value #2:  The value which represents the Low price. By default it is the second Y value in the stock chart.

 

 

Value #3:  The value which represents the Volume.

FormulaFinancial(FinancialFormula.EaseOfMovement,Series1:Y,Series1:Y2,Series2:Y","Series3:Y")

Output Value:
(optional)

The Ease of Movement. If not specified output is stored in the first input value.

FormulaFinancial(FinancialFormula.EaseOfMovement,Series1:Y,Series1:Y2,Series2:Y"," Series3:Y")

Parameter:

-

-

 

A line chart is a good choice when displaying an Ease of Movement series.

Financial Interpretation: The Ease of Movement indicator illustrates the relationship between volume and the change in price.

There are:

  • low values when there is heavy volume combined with a small price change (means that prices are not moving easily)
  • high positive values when prices increase combined with light volume (means that prices are going up easily)
  • high negative values when prices decrease combined with light volume (means that prices are going down easily)
       

Calculation: The Ease of Movement is calculated using following formula:

 

 

The Ease of Movement should be accompanied with it's exponential moving average.

 

Example

This example demonstrates how to calculate Ease of Movement with it's Exponential Moving Average.

Visual Basic Copy Code
Imports Dundas.Charting.WinControl
  ...
  
' Calculates Ease of Movement indicator. Input Values are High, Low and Volume.
Chart1.DataManipulator.FormulaFinancial(FinancialFormula.EaseOfMovement,"Series1:Y,Series1:Y2,Series2:Y","Series3:Y")
 
' Calculates Exponential Moving Average of Ease of Movement indicator.
Chart1.DataManipulator.FormulaFinancial(FinancialFormula.ExponentialMovingAverage,"14","Series3:Y","Series4:Y")
C# Copy Code
using Dundas.Charting.WinControl;
  ...
  
// Calculates Ease of Movement indicator. Input Values are High, Low and Volume.
Chart1.DataManipulator.FormulaFinancial(FinancialFormula.EaseOfMovement,"Series1:Y,Series1:Y2,Series2:Y","Series3:Y");

// Calculates Exponential Moving Average of Ease of Movement indicator.
Chart1.DataManipulator.FormulaFinancial(FinancialFormula.ExponentialMovingAverage,"14","Series3:Y","Series4:Y");

See Also

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