DEFINITION of 'Equivolume'

A chart that compares price and volume and plots them together as one piece of data. The height of each bar represents the high and low for each period and the width represents the volume relative to the total shares traded over the time period being analyzed.

Equivolume

BREAKING DOWN 'Equivolume'

This type of chart is very similar to Japanese candlesticks except that volume is incorporated into the data point rather than added as an indicator on the side. Generally, a wide bar is deemed to be more significant than a thin bar because large volume usually precedes a significant price move.

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RELATED FAQS
  1. What are the main advantages of using an Equivolume Chart?

    Read about the main advantages of using equivolume charts, a price charting technique that incorporates volume into its visual ... Read Answer >>
  2. What are the main disadvantages of using an Equivolume Chart?

    See why the innovative design of EquiVolume price charts creates some inherent disadvantages for traders who are used to ... Read Answer >>
  3. What are the main differences between an Equivolume chart and a Candlestick chart?

    Read about the similarities and differences between how trading information is conveyed in Japanese candlestick charts and ... Read Answer >>
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    Explore the difference between bar and candlestick charts. Learn how technical analysts use charts in the analysis of supply ... Read Answer >>
  5. What do the different colored candlesticks mean?

    Candlestick charts have been used in Western trading for many years and are a very popular method of plotting the price action ... Read Answer >>
  6. Why is the Uptick Volume important for traders and analysts?

    Find out why technical analysts and traders keep track of uptick volume to better assess the momentum of a stock's price ... Read Answer >>
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