Easy of Movement Value (EMV)
factor.formula
MM (Mid-Day Spread):
The midpoint spread (MM) of the day measures the difference between the midpoint of the price fluctuation range of the day and the midpoint of the price fluctuation range of the previous day. Among them, H_t represents the highest price of the day, L_t represents the lowest price of the day, H_{t-1} represents the highest price of the previous day, and L_{t-1} represents the lowest price of the previous day. This value reflects the changes in the daily price fluctuation range.
BR (Reciprocal Volume):
The reciprocal of volatility (BR) represents the ratio of trading volume to the price fluctuation range of the day, which can be understood as the trading volume required for a unit price fluctuation range. Among them, V_t represents the trading volume of the day. The larger the value, the larger the trading volume within the price fluctuation range of the day, that is, the price fluctuation efficiency may be higher.
EMV (Easy Volatility Index):
The EMV is calculated by the ratio of the mid-point spread (MM) of the day to the reciprocal of the volatility (BR). Its essence is to measure the ease of price change under the current trading volume conditions. A positive EMV indicates that the current market volume supports the price to move upward, which may indicate an upward trend; a negative EMV indicates that the current market volume supports the price to move downward, which may indicate a downward trend.
The core idea of the EMV indicator is to judge market trends and momentum by analyzing the relationship between price fluctuations and trading volume. MM measures the change in price fluctuations, while BR measures the trading volume required for price fluctuations. EMV evaluates the efficiency of price movement through the ratio of the two. A high positive EMV value indicates that the price is likely to rise at the current trading volume, while a low negative EMV value indicates that the price is likely to fall at the current trading volume.
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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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Trading volume for the day
factor.explanation
The EMV (Easy Momentum) is a momentum indicator that evaluates market momentum by examining the relationship between price changes and trading volume. When the EMV value is significantly greater than 0, it indicates that at the current trading volume level, it is easier for the stock price to move upward, and the market has upward momentum; conversely, when the EMV value is significantly less than 0, it indicates that at the current trading volume level, it is easier for the stock price to move downward, and there is downward pressure in the market. The EMV indicator is not a tool for predicting future prices, but an indicator for observing the current momentum of the market. It can be used in combination with other technical indicators to improve the accuracy of trading decisions. Generally, the higher the absolute value of the EMV, the more efficient the price change at that volume, and the more obvious the trend may be.