Equivolume

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.