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
| Input | Type | Default | Range or choices |
|---|---|---|---|
Lengthlength | Whole number | 14 | min 1, max 5000 |
Divisordivisor | Number | 10000 | min 1, max 1000000000000 |
What it draws
| Line | Drawn as |
|---|---|
| EOM | Line |
Guide lines at 0.
Used in
No strategy template reads it yet.