To quote Richard W. Arms, Jr (the developer of Equivolume), "If the market wore a wristwatch, it would be divided into shares, not hours." Equivolume combines price and volume 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 for the period. Short wide (fat, oversquare) boxes (heavy volume accompanied with small changes in price) usually indicate turning points. A "power box" is both long and fat, and provides good corroboration of breakouts. Tall and narrow boxes (light volume accompanied with large changes in price) are more likely to occur in established trends. The candlevolume chart demonstrates similar findings.
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