Most of you are probably familiar with Equivolume and Candlevolume, but for those that live by price and volume this charting method is an extremely useful way of plotting price.
Equivolume was developed by Richard W. Arms, Jr. and plots the low and high as a square/rectangle with the width representing volume. "Equivolume displays prices in a manner that emphasizes the relationship between price and volume."
This is a very useful visual representation of the commitment and fight between buyers vs sellers. A fat equivolume tells us that alot of volume took place. If a fat squishy equivolume takes place at the top of a rally, this indicates that alot of buyers were still interested in pushing prices up but met as many sellers who were willing to dump it all at higher prices. These equivolume bars show a turning point.
In my opinion, it is an easier way to see price charts compared to trying to match each bar with each volume histogram. Below shows a few samples of various equivolume shapes.
Also attached is a free ebook from Richard W. Arms titled, "Trading with Equivolume".
Now, exploring this further I would like to introduce candlevolume. This is actually a better way of viewing equivolume as it mixes traditional candlesticks with equivolume, hence you are able to see the open, close, high, and low.
Below is a sample of a candlevolume chart. I will be adding a few charts of my own whenever I get a chance as well.
One of the most useful ways to use candlevolume charts is to identify "test" of the PDL/PDH as well as spotting potential weakening rallies, lower volume pullbacks, trend continuations, strengthening declines, etc...
Hopefully traders who already use this charting package can add their inputs here as well.