EquiVolume

EquiVolume is an innovative charting method that seamlessly integrates volume information into a traditional candlestick chart. Unlike standard candlestick charts, where the candle height solely emphasizes price action, EquiVolume uses candle body width to denote trade volume: the wider the candle, the higher the volume. This intuitive visual approach makes it easier for traders to spot significant trading volumes and enhances overall trading strategy by aligning volume spikes with price action.

Our script specifically generates an EquiVolume chart for the visible range on your charting platform. Additionally, this script offers the flexibility to plot regular volume as a column plot, with the column width proportionally adjusted to the volume, providing you with enhanced visual analysis.

Key Features of EquiVolume Trading Indicator

Customizable Chart Options

• Candlestick Volume Visualization: Presents candles with a volume-adjusted width, offering immediate insights into trading volume.
• Volume Column Visualization: Displays volume using columns, where the width represents the volume, adding another layer to volume analysis.

Advanced Intrabar Analysis

For a more granular analysis of market trends, the EquiVolume script allows users to perform intrabar analysis, adding depth to your trading strategy.

• Enable/Disable Functionality: Activate or deactivate intrabar analysis with ease. When enabled, the script evaluates the percentage of volume and candle movement in each direction relative to the current timeframe (TF).
• Customizable Lower Time Frame (LTF) Range: Choose an LTF from 1 to 240 minutes to suit your intrabar analysis needs.
• Volume & Candle Movement Calculation:
  • Volume Percentage: Calculates the percentage of the total volume from LTF candles moving in the predominant direction.
  • Candle Count: Determines the number of LTF candles aligning with the current TF direction.

Adjustable Width Boxes (Bars)

• Minimum Width Setting: Define the minimum width of your candlestick or volume bar, ensuring clarity regardless of volume size.
• Maximum Width Setting: Set the maximum width, preventing oversized bars from cluttering your chart.

How to Trade the EquiVolume Indicator?

The visual depth provided by the EquiVolume method allows traders to effortlessly pinpoint large volume movements in relation to price changes, without the need for separate volume comparison. By integrating both price and volume into a singular chart format, traders gain a comprehensive understanding of market dynamics.

An additional illustration is provided for clarity:

This script also enhances analytical breadth by performing intrabar analysis on chart candles, effectively highlighting bullish or bearish activity within a single candle. This includes estimating the proportion of bullish or bearish trading activity or discerning intrabar candle trends.

Illustrative Example:

• Consider a green 15-minute candle.
• Within this candle, if there are 10 green 1-minute LTF candles, then 10/15, or 66.67%, of the candle is filled green.

The script efficiently displays data beginning from the last visible bar on the right, scrolling leftward. As you scroll back through historical data, the script reveals insights for the visible chart segments.

Explore past activities further by scrolling:

Important Considerations

To optimize the use of intrabar analysis, avoid selecting an LTF that vastly differs from the current TF, as this may cause errors. Instead, the script intelligently self-adjusts, elevating the LTF automatically to avoid disruptions.

When necessary, elevate your LTF to maintain data integrity:

If the desired LTF exceeds the current TF, adjustments are automatically made, accompanied by a visible, yet non-intrusive, notification.

On rare occasions, due to drawing limitations between bars, a wick may not align perfectly in the center.

FAQ

• What is the EquiVolume indicator? EquiVolume is a charting technique that combines volume data with candlestick charts by adjusting the candle width according to volume levels.
• How does intrabar analysis work in EquiVolume? Intrabar analysis evaluates smaller time frame movement and volume direction percentages relative to the current timeframe.
• How can I access the EquiVolume indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.
• Why are some bars not visible in my chart? This might occur if the LTF is set too high, adjust appropriately to ensure visibility.
• Do I need technical skills to use the EquiVolume indicator? The intuitive design of EquiVolume requires no advanced technical skills, making it accessible for beginners and seasoned traders alike.