Definition

The Ease of Movement (EOM) indicator is your go-to tool for understanding how much effort the market is exerting to move prices. Think of it as a "market effort gauge." It takes into account both the trading volume and the price range within a given period to give you an idea of how easily an asset is moving up or down.

Suggested Trading Use

When you see the EOM rising, the market is cruising upward with little resistance—kind of like a car smoothly accelerating down an open highway. This could be a good time to hop in for a bullish trade, as it suggests that buying pressure is effectively pushing prices up.

Conversely, if the EOM is dipping, the market is having a harder time gaining upward traction—imagine trying to walk through a mud pit. You might want to think twice about entering a long position or consider a short position, as the selling pressure is likely strong.

Because the EOM is an unbounded oscillator, it doesn't have an upper or lower limit, so it's crucial to compare current and past EOM values to get a sense of its relative strength or weakness.