The Equivolume technical analysis indicator
shows the relationship between a stock's price and its volume.
Typically, the volume traded of a particular stock is considered
separately from the normal open, high, low, and close prices of the
stock. Equivolume combines the price in a two-dimensional box.
The top line of the box is the high for the period and the
bottom line is the low for the period.
The width of the box represents the volume traded for the period.
The trading rules often applied to the equivolume indicator is to
consider the shape of each Equivolume box as a description of
the supply and demand for the stock during the period.
Short, wide boxes (ie. large volume with just a small change in price)
are expected to precede a change in price trend for the stock.
A tall, narrow box (ie. small volume accompanied with big changes in
price) are considered confirmations of the current price trend.
The values of an equivolume series cannot be properly treated as a
time-series because the notion of time is not present in the
equivolume data, it is replaced with volume.