Equivolume

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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

INVESTOPEDIA EXPLAINS '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?

    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 is the difference between a drawdown in banking and a drawdown in trading?

    The term "drawdown" appears in both the banking world and in the arena of trading, but it has completely different meanings ... Read Full Answer >>
  5. How does a company determine the right level of sales volume?

    A company determines the right level of sales volume by conducting a cost-volume-profit analysis. This helps a company figure ... Read Full Answer >>
  6. How can the exponential moving average be used in swing trading?

    The exponential moving average (EMA) is a variation of the simple moving average that places more emphasis on the latest ... Read Full Answer >>
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