Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Soultrader

Intro to Equivolume and Candlevolume

Recommended Posts

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."

 

attachment.php?attachmentid=2977&stc=1&d=1190204720

 

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.

 

attachment.php?attachmentid=2978&stc=1&d=1190205044

 

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.

 

attachment.php?attachmentid=2980&stc=1&d=1190205442

 

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.

equivolume1.png.dd7c34d9a5d0f0dd9cbef1ed9879d726.png

equivolume2.png.64a79733370543fbc97b8b9037387510.png

Trading With Equivolume.pdf

candlevolume.png.4c6c5b4850d23ac3aae02aa526a33d6d.png

Share this post


Link to post
Share on other sites

Thats actually quite a nifty tool. Never actually seen it on many charting platforms before. Is the actual candle type called Equivolume? Would make it much much easier to spot reversals and sticking points.

Share this post


Link to post
Share on other sites

Yes, on my platform is it labeled equivolume or candlevolume. I understand it is not widely used and therefore not readily available on all trading platforms.

 

It makes VSA trading alot easier in my opinion.

Share this post


Link to post
Share on other sites
Yes, on my platform is it labeled equivolume or candlevolume. I understand it is not widely used and therefore not readily available on all trading platforms.

 

It makes VSA trading alot easier in my opinion.

 

I assume Tradestation supports equivolume right?

I've used it somewhat in the past for stocks. I can see how your application especially combined with the tick delta indicator gives a great visual interpretation.

Share this post


Link to post
Share on other sites
Guest cooter
I assume Tradestation supports equivolume right?

I've used it somewhat in the past for stocks. I can see how your application especially combined with the tick delta indicator gives a great visual interpretation.

 

Don't assume. Ask somebody. Or better use the search function at this forum.

 

The accuracy of the TS constant "volume" charts has been discussed. They are not the same as Arms' Equivolume bars, IMHO.

Share this post


Link to post
Share on other sites

Here we have todays candlevolume and equivolume in comparison on the Nikkei futures. Notice the break of the 30min range low was on a wide tall candle bar. This indicates a valid breakdown to the downside with a target at the previous day value high.

 

When price reached the VAH pivot, we saw a fat squishy candle (slightly tall) but wait.... the next bar is a skinny toothpick looking bar. Thus a classic VAH play can be taken.

 

The run up on the bounce of the VAH is followed by skinny bars indicating no demand. This is a warning signal and is followed by a power supply bar downwards to test the VAH once again. Notice the test is now on a skinny bar compared to the last test.

 

The bottom chart shows equivolume. I personally find candlevolume a better way to visually see price action and volume combined.

 

attachment.php?attachmentid=3010&stc=1&d=1190256143

5aa70e0617582_September202007CandlevolumeandEquivolume.thumb.JPG.8c10ead04e26eecbc7f067a8d46c8063.JPG

Share this post


Link to post
Share on other sites

Thanks for the differentiation, I can see why you like the first style better.

 

So the skinny bars on the last test show the VAH may hold up since the selling pressure has dried up right?

Share this post


Link to post
Share on other sites

Interesting charts James. As you know, I like trading off the candlesticks and these fat/skinny guys look funny to me. :o

 

It would take some getting used to, but I could see the value here, esp if volume is an integral part of your decision making.

Share this post


Link to post
Share on other sites
I assume Tradestation supports equivolume right?

I've used it somewhat in the past for stocks. I can see how your application especially combined with the tick delta indicator gives a great visual interpretation.

 

There have been lots of suggestions for this to be built for TS in the forum but have been suggested with tons of other features. Just don't hold your breath. I use another platform that has it (mrswing.com) for stocks.

Share this post


Link to post
Share on other sites

Hello to all and great thread Soultrader. Just to let you know, Ensign Software has both equivolume and candlevolume integrated in the software and you can use it either for future, forex, stock or any other trading instrument that you like.

 

At 39.95$ US per month, this charting software is really a great asset. In fact there is a large portion on their website discussing all the possible ways volume can be used.

 

Since I am using them since some time, I really like their sofware. Very good quality for the price you pay monthly.

 

Just wa thinking to share my insight on another software alternative for people interested in going deeper in their studies of equivolume or candlevolume analsyis.

 

BTW, Soultrader, I really see your point when talking about the usefulness of incorporating candlevolume in VSA.

 

Sincerely

 

Shreem:)

Share this post


Link to post
Share on other sites

Can a member tell me which platforms support equivolume charts now

 

 

 

Multicharts not yet responded 2 my QUESTION

 

NINJA i was told cannot do it & same for Esignal

 

john

 

 

 

Here we have todays candlevolume and equivolume in comparison on the Nikkei futures. Notice the break of the 30min range low was on a wide tall candle bar. This indicates a valid breakdown to the downside with a target at the previous day value high.

 

When price reached the VAH pivot, we saw a fat squishy candle (slightly tall) but wait.... the next bar is a skinny toothpick looking bar. Thus a classic VAH play can be taken.

 

The run up on the bounce of the VAH is followed by skinny bars indicating no demand. This is a warning signal and is followed by a power supply bar downwards to test the VAH once again. Notice the test is now on a skinny bar compared to the last test.

 

The bottom chart shows equivolume. I personally find candlevolume a better way to visually see price action and volume combined.

 

attachment.php?attachmentid=3010&stc=1&d=1190256143

Share this post


Link to post
Share on other sites

Dick Arms (the Equivolume guy) has a new charting method that he calls "Arms Candlevolume."

 

I don't want to spam so I won't post any links, but if you're interested he does have a book out on the technique.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • My wife Robin just wanted some groceries.   Simple enough.   She parked the car for fifteen minutes, and returned to find a huge scratch on the side.   Someone keyed her car.   To be clear, this isn’t just any car.   It’s a Cybertruck—Elon Musk's stainless-steel spaceship on wheels. She bought it back in 2021, before Musk became everyone's favorite villain or savior.   Someone saw it parked in a grocery lot and felt compelled to carve their hatred directly into the metal.   That's what happens when you stand out.   Nobody keys a beige minivan.   When you're polarizing, you're impossible to ignore. But the irony is: the more attention something has, the harder it is to find the truth about it.   What’s Elon Musk really thinking? What are his plans? What will happen with DOGE? Is he deserving of all of this adoration and hate? Hard to say.   Ideas work the same way.   Take tariffs, for example.   Tariffs have become the Cybertrucks of economic policy. People either love them or hate them. Even if they don’t understand what they are and how they work. (Most don’t.)   That’s why, in my latest podcast (link below), I wanted to explore the “in-between” truth about tariffs.   And like Cybertrucks, I guess my thoughts on tariffs are polarizing.   Greg Gutfield mentioned me on Fox News. Harvard professors hate me now. (I wonder if they also key Cybertrucks?)   But before I show you what I think about tariffs… I have to mention something.   We’re Headed to Austin, Texas This weekend, my team and I are headed to Austin. By now, you should probably know why.   Yes, SXSW is happening. But my team and I are doing something I think is even better.   We’re putting on a FREE event on “Tech’s Turning Point.”   AI, quantum, biotech, crypto, and more—it’s all on the table.   Just now, we posted a special webpage with the agenda.   Click here to check it out and add it to your calendar.   The Truth About Tariffs People love to panic about tariffs causing inflation.   They wave around the ghost of the Smoot-Hawley Tariff from the Great Depression like it’s Exhibit A proving tariffs equal economic collapse.   But let me pop this myth:   Tariffs don’t cause inflation. And no, I'm not crazy (despite what angry professors from Harvard or Stanford might tweet at me).   Here's the deal.   Inflation isn’t when just a couple of things become pricier. It’s when your entire shopping basket—eggs, shirts, Netflix subscriptions, bananas, everything—starts costing more because your money’s worth less.   Inflation means your dollars aren’t stretching as far as they used to.   Take the 1800s.   For nearly a century, 97% of America’s revenue came from tariffs. Income tax? Didn’t exist. And guess what inflation was? Basically zero. Maybe 1% a year.   The economy was booming, and tariffs funded nearly everything. So, why do people suddenly think tariffs cause inflation today?   Tariffs are taxes on imports, yes, but prices are set by supply and demand—not tariffs.   Let me give you a simple example.   Imagine fancy potato chips from Canada cost $10, and a 20% tariff pushes that to $12. Everyone panics—prices rose! Inflation!   Nope.   If I only have $100 to spend and the price of my favorite chips goes up, I either stop buying chips or I buy, say, fewer newspapers.   If everyone stops buying newspapers because they’re overspending on chips, newspapers lower their prices or go out of business.   Overall spending stays the same, and inflation doesn’t budge.   Three quick scenarios:   We buy pricier chips, but fewer other things: Inflation unchanged. Manufacturers shift to the U.S. to avoid tariffs: Inflation unchanged (and more jobs here). We stop buying fancy chips: Prices drop again. Inflation? Still unchanged. The only thing that actually causes inflation is printing money.   Between 2020 and 2022 alone, 40% of all money ever created in history appeared overnight.   That’s why inflation shot up afterward—not because of tariffs.   Back to tariffs today.   Still No Inflation Unlike the infamous Smoot-Hawley blanket tariff (imagine Oprah handing out tariffs: "You get a tariff, and you get a tariff!"), today's tariffs are strategic.   Trump slapped tariffs on chips from Taiwan because we shouldn’t rely on a single foreign supplier for vital tech components—especially if that supplier might get invaded.   Now Taiwan Semiconductor is investing $100 billion in American manufacturing.   Strategic win, no inflation.   Then there’s Canada and Mexico—our friendly neighbors with weirdly huge tariffs on things like milk and butter (299% tariff on butter—really, Canada?).   Trump’s not blanketing everything with tariffs; he’s pressuring trade partners to lower theirs.   If they do, everybody wins. If they don’t, well, then we have a strategic trade chess game—but still no inflation.   In short, tariffs are about strategy, security, and fairness—not inflation.   Yes, blanket tariffs from the Great Depression era were dumb. Obviously. Today's targeted tariffs? Smart.   Listen to the whole podcast to hear why I think this.   And by the way, if you see a Cybertruck, don’t key it. Robin doesn’t care about your politics; she just likes her weird truck.   Maybe read a good book, relax, and leave cars alone.   (And yes, nobody keys Volkswagens, even though they were basically created by Hitler. Strange world we live in.) Source: https://altucherconfidential.com/posts/the-truth-about-tariffs-busting-the-inflation-myth    Profits from free accurate cryptos signals: https://www.predictmag.com/       
    • No, not if you are comparing apples to apples. What we call “poor” is obviously a pretty high bar but if you’re talking about like a total homeless shambling skexie in like San Fran then, no. The U.S.A. in not particularly kind to you. It is not an abuse so much as it is a sad relatively minor consequence of our optimism and industriousness.   What you consider rich changes with circumstances obviously. If you are genuinely poor in the U.S.A., you experience a quirky hodgepodge of unhelpful and/or abstract extreme lavishnesses while also being alienated from your social support network. It’s about the same as being a refugee. For a fraction of the ‘kindness’ available to you in non bio-available form, you could have simply stayed closer to your people and been MUCH better off.   It’s just a quirk of how we run the place and our values; we are more worried about interfering with people’s liberty and natural inclination to do for themselves than we are about no bums left behind. It is a slightly hurtful position and we know it; we are just scared to death of socialism cancer and we’re willing to put our money where our mouth is.   So, if you’re a bum; you got 5G, the ER will spend like $1,000,000 on you over a hangnail but then kick you out as soon as you’re “stabilized”, the logistics are surpremely efficient, you have total unchecked freedom of speech, real-estate, motels, and jobs are all natural healthy markets in perfect competition, you got compulsory three ‘R’’s, your military owns the sky, sea, space, night, information-space, and has the best hairdos, you can fill out paper and get all the stuff up to and including a Ph.D. Pretty much everything a very generous, eager, flawless go-getter with five minutes to spare would think you might need.   It’s worse. Our whole society is competitive and we do NOT value or make any kumbaya exception. The last kumbaya types we had werr the Shakers and they literally went extinct. Pueblo peoples are still around but they kind of don’t count since they were here before us. So basically, if you’re poor in the U.S.A., you are automatically a loser and a deadbeat too. You will be treated as such by anybody not specifically either paid to deal with you or shysters selling bejesus, Amway, and drugs. Plus, it ain’t safe out there. Not everybody uses muhfreedoms to lift their truck, people be thugging and bums are very vulnerable here. The history of a large mobile workforce means nobody has a village to go home to. Source: https://askdaddy.quora.com/Are-the-poor-people-in-the-United-States-the-richest-poor-people-in-the-world-6   Profits from free accurate cryptos signals: https://www.predictmag.com/ 
    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.