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.


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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    The number of shares or contracts traded in a security or an ...
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  5. Confirmation

    The use of an additional indicator or indicators to substantiate ...
  6. Valium Picnic

    A market holiday or a slow trading day.
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  1. What are the main advantages of using an Equivolume Chart?

    Equivolume charts were developed by Richard W. Arms, who also created the ARMS/TRIN index. These charts resemble Japanese ... Read Full Answer >>
  2. What are the main disadvantages of using an Equivolume Chart?

    EquiVolume price charts were introduced by Richard W. Arms, who also created the ARMS/TRIN Index. Arms' chart builds on many ... Read Full Answer >>
  3. What are the main differences between an Equivolume chart and a Candlestick chart?

    Equivolume charts are very similar in appearance and interpretation to Japanese candlestick charts. They both represent ways ... Read Full Answer >>
  4. What are some of the most common technical indicators that back up Doji patterns?

    The doji candlestick is important enough that Steve Nison devotes an entire chapter to it in his definitive work on candlestick ... Read Full Answer >>
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    The exhausted selling model is a pricing strategy used to identify and trade based off of the price floor of a security. ... Read Full Answer >>
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