Equivolume Charts Definition
Equivolume charts display the relationship between price and volume in a bar. The top of the bar is the high of the session and the bottom of the bar is the low of the session.
Equivolume Chart
Created by Richard W. Arms, a chart in which the vertical axis is the high-low range for each day, while the horizontal axis represents the volume of shares of stock or the number of contracts traded for the day.
Equivolume charts display the high and low of the period and the width of each plot represents volume.
equivolume chart: Richard Arms created this type of chart. It measures the relationship between price and volume. Price is measured on the vertical axis and volume is measured on the horizontal axis.
The Equivolume chart uses Volume during that interval to control the width of the candlestick body. The wicks are the same as a regular candlestick. Thus a fat candle means that the volume was high while a skinny one means that the volume was low.
The following Equivolume chart shows Phillip Morris' prices.
Note the price consolidation from June to September with resistance around $51.50. The strong move above $51.50 in October produced a power box validating the breakout.
Equivolume Chart: A chart that measures the relationship between price and volume.
Price is measured on the vertical axis and volume is measured on the horizontal axis.
ERISA: The Employee Retirement Income Security Act.
Arms' Equivolume charting tool by quantifying the shape aspects of the plotted boxes. The purpose of this quantifying is to determine the ease, or lack thereof, with which a particular issue is able to move in one direction or another.
This indicator is used frequently with equivolume charts to identify market formations. A buy signal is generated when the EMV crosses above zero, a sell signal when it crosses below zero.
Volumetric Japanese candles (Candlevolume)
Equivolume charts
Point and Figure, as named XO, or crosses-zero
Three-Line Break
Renko charts
Kagi charts ...
Ease of Movement was developed by Richard W Arms and performs a similar function to Equivolume charts. It highlights the relationship between volume and price changes and is particularly useful for assessing the strength of a trend.
Volume is available on all charting packages, and is usually plotted as a bar chart underneath the price. You can also get volume indications by plotting an equivolume chart or, preferably, a candle volume chart, ...
 See also: EquiVolume, Chart, Volume, Candle, Stock
  
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