✔️ Information reviewed and updated in November 2023 by Eduardo López
Determining the movement of an asset and its trend is very important to know if it is worth buying, selling or holding positions. Here we will talk about the ease of movement, an indicator that can help you determine the movement of assets with low transaction volumes.
✨ How is ease of movement determined?
To determine ease of movement, It is necessary to perform a calculation for which the following data are required: maximums, minimums, the eve of the maximum and minimum and the volume. The most common is that the same Trading platform gives you this indicator already calculated.
✨ What is the indicator for?
One of the great advantages of this indicator is the fact that It turns out to be very useful for assets that do not have large volumes of transactions. This makes it ideal for alternative cryptocurrencies, for example, or not-so-popular stocks.
When the ease of movement indicator shows us a positive value we are facing a rise in prices while, if it is negative, we are facing a decline. In this way, we can know if the market will be oriented to the downside or to the upside.
✨ How can we take advantage of the ease of movement?
For those who are investors and seek to know the trends in the prices of assets with low volumes of transactions, without a doubt this indicator is a good option. You will be able to know if the trend is downward or upward despite having limited data.
In this way, you will have the ability to make many better decisions such as holding your positions, buying or selling. All of this translates into much more precise actions, fewer risks and better results. In addition, understanding it is not as difficult as it seems, you only have to look at the indicator, if it is negative or positive.