Equi Volume Chart

Equi Volume Chart
Equivolume charts are a combination of price movement and trading volume charts. The chart gives information on high, low, volume and price direction per trading period.

Equivolume charts were introduced by Richard W. Arms Jr. It was well-known that the trading volume was an important criterion for assessing the current and future situation in the market. Arms consequently introduced the volume - which up to that date was only displayed as an additional histogram - into the chart itself by plotting price versus volume. This way, information about open and close prices and the normal time line are lost.

Trading Information in Equi Volume Charts

The following information is available in the boxes:
  • The high per trading period, given by the top line of the box
  • The low per trading period, given by the bottom line of the box
  • The trading volume, given by the width of the box. Because of this display choice, the timeline information is distorted.
  • The direction of the price movement, given by the box color. Colors are usually red or black for falling and green or white for rising prices. The color settings can be changed.
The open and close prices are not given in this chart type. However, this limitation is compensated by the strong visual display of buying powers and selling pressures within a market.

Pattern in Equivolume Charts

A Single Bar

Bar Schemata

Equi Volume Pattern
In equivolume charts, four typical patterns can be found that give information on the current market and trends, similar to single candles in candlestick charts. See the graphic for more details.

Narrow Bars - Usually seen in balanced markets. The price movements result from relatively small trading volumes. Several consecutive narrow bars may signal a distinctive trend setting in, though not as strong as one indicated by power bars, see below.

Squares - The price spans are small although there is significant trading activity. The pattern may indicate resistance areas in the chart or appear exactly at the point of trend or resistance lines. Insecurity rules the market, and the resulting wins and losses were achieved under counter pressure.

Oversquares - Both sides of the market are strongly into trading. Large ask volumes have met large bid volumes. The price span is very small. The pattern can be interpreted as trend reversal and be combined with other triggers in charts.

Power Bars - Named after the snack food. In an equivolume chart, Power Bars result from a large price movement based on an active market. They can be interpreted as important breaks and be combined with other triggers in charts.

General Chart Properties

When the chart is active, you can edit the chart properties in the toolbox, for example the history length, the axes and legends.

You can also

Content-Dependent Chart Settings

In the properties of the displayed stock (symbol), you can find additional parameters. Besides the Standard Properties, you can find specific parameters for this chart type.

Equi Volume Properties

Border Color - Here you can select a color for the border.

Show Frame - Here you can select whether the candle frame will be displayed or hidden.

Bullish Color - Here you can select a color and opacity for upward boxes.

Bearish Color - Here you can select a color and opacity for downward boxes.Equivolume Charts by Richard Arms