Ease of movement
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LibraryVolume

Indicator

Ease of movement

How easily price moves for the volume traded: a large move on little volume is easy, a small move on heavy volume is hard.

VolumeOwn pane2 inputsEOM

How it is calculated

Per bar (Arms): the move of the midpoint, (high plus low) divided by 2 minus the previous bar's, times the bar's range, divided by volume over the divisor (default 10000). A bar with no range or no volume counts as 0, so gaps in the volume leave no hole in the average. The line is the simple average over the length; the first move needs a previous bar, so the first value is at bar length.

Reference: Ease of movement (Arms)

How to read it

Above zero price rises with ease, below zero it falls with ease; near zero it barely moves for the volume traded. The size depends on price, volume and divisor, which only changes the scale, so across markets only the sign and the shape compare. On forex the volume is tick volume.

In a strategy

As a trend filter: only take longs while ctx.ind("eom", length=14) is above zero, and close them when it crosses below.

Inputs

InputTypeDefaultRange or choices
LengthlengthWhole number14min 1, max 5000
DivisordivisorNumber10000min 1, max 1000000000000

What it draws

LineDrawn as
EOMLine

Guide lines at 0.

Used in

No strategy template reads it yet.

OrionQuant