Ease of Movement & SMI Ergodic Indicator

by | Oct 11, 2020

Disclaimer: Posts on the HyperTrader blog and associated HyperLinq websites are for educational and informational purposes only. These posts should not be taken as financial advice, nor are they meant to be viewed as trading advice. HyperLinq Inc. or the authors take no responsibility for any damages or losses.

When trading crypto assets, it is crucial to recognize market conditions. Crypto traders will use several technical analysis tools at the same time to better understand market conditions. In this blog, we will discuss two technical indicators, the Ease of Movement & SMI Ergodic Indicator, which help crypto traders make better trading decisions in markets like BTC & ETH.

Ease of Movement

The Ease of Movement indicator is a momentum trading tool that exhibits the connection within the change rate in a crypto asset’s value and volume. EOM is designed for the daily trading chart and more extended timeframes. Like the name, the higher the indicator’s quantity, the lighter the price, the more robust the price trend is. A more considerable particular value symbolizes price going higher on a disproportionately low volume of a specific asset. On the contrary, a more significant negative value shows price going down on a disproportionately low volume of a particular asset. Therefore, EOM is utilized to conclude how much volume is required to generate price movement. EOM indicator rate of higher than zero indicates that the asset is being purchased or being accumulated. A price below zero frequently means that the asset is being sold. 

Most crypto traders utilize a break over or beneath the zero lines to join into a new trade. Beyond zero interpretations are bullish and, consequently, a possible implication for entering a buy/long position. Therefore, beneath zero, variations are bearish and a reasonable suggestion to enter into a sell/short position. To evade false trading signals, crypto traders might only enter trades where the indicator is inception over zero.

SMI Ergodic Indicator

Ease of Movement & SMI Ergodic Indicator on HyperTrader

The SMI Ergodic Indicator utilizes the TSI indicator, revealed by William Blau. The SMI manages a double MA of value subtracts before value over two-time support. The trading signal line, an EMA of the SMI, is deducted from the SMI to produce the SMI Ergodic Oscillator. The oscillator is presented as a histogram. The crypto trader may modify the close, EMA, and time lengths. This indicator’s interpretation is additionally displayed in the compressed view given in the calculation below.

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Head of Content Marketing @ HyperLinq. His love for Chai and mountains precedes everything. Often wonders about things like, "why $1 earned through leverage feels 100x better than $1 earned selling your time?"
Head of Content Marketing @ HyperLinq. His love for Chai and mountains precedes everything. Often wonders about things like, "why $1 earned through leverage feels 100x better than $1 earned selling your time?"

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