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Data:2009-12-12 2:34
EMV (Ease of Movement value) Chinese name: simple volatility indicators, by Richard W �Arms Jr6, under the equivalent figure (Equivolume Charting) theory made of. If the less volume will be able to push stock prices higher, then the EMV value will rise, on the contrary, the share price fall is also accompanied by only a relatively small volume, then the EMV value will be reduced. On the other hand, if prices do not rise and not fall , or the prices rise and fall, are accompanied by a large volume, then the value of EMV will be near zero.
Principles of use of this formula is quite clever, the process of falling stock prices, as buying continued apathetic withdrawal, resulting in a gradual reduction in volume, EMV value is therefore a trailing down, until the price dropped to a reasonable support for a particular area, check bargain to pay to promote the re-active volume, EMV values for the relative reaction then upward, when the EMV value approaches zero from negative values up to express some confidence in the firm's capital, the success of reversing the decline in stock prices, and the prices will not only reverse up, and the formation of another buy signal.
Quotes of the buy signal occurred in the EMV value, from negative to positive moment, however, the subsequent rise in stock price, volume, and will not be great, generally showed only a slow increase, this amount of stability and turnover, prompting EMV values upward, as the head volume is usually the most concentrated area, therefore, market sentiment gathered more and more, until, when the larger volume, EMV response to decline in value will advance, and gradually tends to zero, once the EMV from the positive into a negative, when, and the prices already decided that a full reversal, to form a new sell signal.
EMV using this volume and popularity of the ups and downs, constitute a complete cycle of the stock system, the target stock price to guide investors to tap the rhythm smooth and consistent compliance with EMV to buy and sell signals, to avoid popular thermal pool and turnover The timing network to buy the stock, and turnover has gradually evolved powerlessness, while the fanatic population is not aware of the energy will soon exhausted, sell the stock, and out of the market.
EMV indicators used across the 0 axis of the sale of the principles, in addition to target line EMV, the EMV and EMV on the average line, two lines cross is not meaningful, but rather choose to EMV target average across the 0 axis signals generated by The transaction will be more satisfactory results.
