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Ease of Movement

04/02/00 02:23:42 PM
by Jason K. Hutson

Ease of Movement

Security:   N/A
Position:   N/A

First, calculate the midpoint movement (MPM):
MPM TH TL YH YL = + - +
2 2
TH = Today's high
YH = Yesterday's high
TL = Today's low
YL = Yesterday's low

If, for example, yesterday the stock had a high of 32 and a low of 31, its midpoint would be 31 -1/2. If
today it had a high of 34 and a low of 32, then its midpoint would be 33. The midpoint move would be 33
minus 31 1/2, or 1 1/2.

The next step is to calculate the box ratio. The box is the Equivolume box, which uses the day 's
high-to-low price range for the vertical axis and the volume for the horizontal axis. Use a number of
increments to represent volume %97 for example, 10,000 shares equal 1 unit. A 55,000-share day would
have 5.5 units. For the height of the box, use 1/8 of a point for 1 unit. If a stock had a high of 24 and a
low of 23- 1/8, the number of units would be 7 units. Divide the volume units by the range units for the
box ratio.

EMV=(Midpo int move)/(Box ratio)

Jason K. Hutson Staff Writer. Enjoys trendlines, support and resistance, moving averages, RSI, MACD, ADX, Bollinger bands, parabolic SAR, chart formations, and volume analysis.

Title: Industrial Engineer
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