See: VWAP. See: Volume Weighted Average Price.
Equivolume is the relationship between the volume of a given equity at a given price. Generally, equivolume is presented in the form of a hybrid bar chart that highlights spikes in volume of a given security.
Why does this matter? Well, if a given stock trades, on average, a million shares a day, and then suddenly spikes to trade 10 million on a given day, then it's likely...something happened. Something investors need to pay attention to. And the equivolume chart shows, more or less, how much attention they need to pay.
Additionally, when large blocks of stock are traded in these high volume days, it usually implies that professional institutional investors have been the ones making those trades. They are schooled, and given the best information. They do this type of trading all day long, so they presumably have better insight into events than do retail traders of that stock. Presumably.
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Finance: What is Trading Volume?29 Views
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volume and this is trading with okay yeah yeah you get the idea [Man shouting into megaphone]
volume here is not about number 11 on the dial but rather about the number of [Person turning up volume dial]
shares trading back and forth on a given day week hour a month and generally
speaking higher levels of volume are a relatively bullish sign for the market [Water pouring]
on all else being equal that is optimistic investors are putting money
into the system buying up stocks and contributing liquidity like they are [Investor money transfer to stock market]
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low volume low liquidity and high is good
Inessa not just a california proposition 64 thing high volumes are attractive to [People protesting for cannabis]
large institutional professional traders and investors because there remains the
perception that if they want to sell a given position well then with high
volumes they can get out quickly so they feel less hesitation about getting in
quickly okay good just checking [Man shouting into megaphone]