A volume indicator that measures how easily price moves — quantifying the fragility of rallies made on thin participation, and the weight of moves made on real volume.
Ease of Movement (EOM) was introduced by Richard W. Arms Jr. in the early 1990s. It measures neither price nor volume in isolation, but the ratio between them — how much volume was required to move the price.
The idea is plain, and sharp. A one-dollar advance achieved on light volume and a one-dollar advance achieved by absorbing heavy volume are not the same advance. The first is a light market; the second, a heavy one. EOM compresses that quality of lightness or heaviness into a single line.
Positive values indicate that price moved upward with relative ease against the volume that traded. Negative values indicate the same for downward moves. Readings close to zero mean either that volume was substantial relative to the move, or that there was no move to speak of.
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