A charting method that throws out the time axis and lets volume set each bar's width. Every box shows how much trading produced how much movement, so effort and result can be read at a glance.
Equivolume is a charting method devised by Richard Arms. It is not an indicator layered on top of price like a moving average or an oscillator. It changes the way each bar itself is drawn.
A normal chart puts time on the horizontal axis, so a day and a week occupy the same width. Volume gets exiled to a bar chart below and is treated as something separate from price.
Equivolume drops that assumption. The horizontal axis becomes volume rather than time, and each bar is drawn as a box. The box's width is that bar's volume, and the box's height is that bar's range (high minus low).
So a single box tells you, through its shape and area at once, how much trading took place and how far that trading pushed price.
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NASDAQ:AAPL
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