This is a trading item or a component that was created using QuantShare by one of our members.
This item can be downloaded and used by QuantShare Trading Software.
Trading items are of different types. There are data downloaders, trading indicators, trading systems, watchlists, composites/indices...
You can use this item and hundreds of others for free by downloading QuantShare.
Top Reasons Why You Should Use QuantShare:
Works with US and international markets (stock, forex, options, futures, ETF...)
Offers you the tools that will help you become a profitable trader
Allows you to implement any trading ideas
Exchange items and ideas with other QuantShare users
Our support team is very responsive and will answer any of your questions
We will implement any features you suggest
Very low price and much more features than the majority of other trading software
The Ease of Movement Indicator or the Arms Index was developed by Richard Arms, Jr. The indicator shows the link between volume and price change, it determines the ease at which prices are moving. Its formula uses the current and previous high and low prices as well as the volume (in millions).
It is considered bullish when the indicator crosses above zero, and bearish when it crosses below zero. Above the zero level, the indicator indicates that the security is moving upward easily, while below the zero level it indicates that the security is moving downward easily. At the zero level, the security price movement is small on heavy volume.
The Ease of Movement Indicator is also called the Arms Index. It is different from the TRIN (Arms Index) which is a breadth indicator that uses the number of advancing and declining issues in its formula. Both formulas were developed by Richard Arms but their calculation is different.
Note that the TRIN raw data is choppy. This is because the indicator is not smoothed with moving averages. The smoothed Ease of Movement indicator or Arms index can be used to determine trends in how the money is flowing into or out of a security.
This item creates an indicator whose name is ArmsIndex. The function doesn't accept any parameters.
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.
