Ease of Movement Value
factor.formula
MM (Middle Spread):
MM (Middle Movement) represents the average of the differences between the current day and the previous day’s price fluctuations, where HIGH_t and LOW_t are the current day’s highest and lowest prices, and HIGH_{t-1} and LOW_{t-1} are the previous day’s highest and lowest prices. This value reflects the degree of change in price fluctuations.
BR (Ratio of Box Width to Volume):
BR (Box Ratio) represents the ratio of the daily trading volume to the daily price fluctuation, where VOL_t is the daily trading volume. This value represents the volume required to drive price fluctuations, which can be understood as the volume required for a unit price fluctuation, thus reflecting the trading activity.
EMV (Easy Volatility Index):
EMV (Ease of Movement Value) is the ratio of the middle spread to the box width and volume ratio. It combines price fluctuations and volume information to measure the ease of price movement. A higher EMV value generally means that it is easier for prices to move upward, while a lower EMV value means that it is easier for prices to move downward.
The indicator is calculated in three steps: first, the middle price difference MM is calculated, then the ratio of box width to trading volume BR is calculated, and finally EMV is calculated.
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The middle price difference of the day
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Highest price of the day
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Lowest price of the day
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Previous day's highest price
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Previous day's lowest price
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The ratio of the box width to the trading volume on the day
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Trading volume for the day
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Simple intraday volatility index
factor.explanation
The EMV (Easy Momentum) is a momentum indicator that evaluates the ease of price movement through the relationship between volume and price. A positive EMV value indicates that the price is more likely to move upward at the current volume level; a negative EMV value indicates that the price is more likely to move downward. The larger the absolute value of the EMV, the easier it is for the price to move. Investors can use the EMV indicator to assist in determining market trends and looking for buy and sell signals, especially when the EMV shows a significant rise or fall, which may indicate a potential change in price trend. However, like other technical indicators, EMV should not be used alone, but should be combined with other indicators and market information for comprehensive analysis.