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To: Justa Werkenstiff who wrote (129773)10/17/2001 9:35:04 AM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 436258
 
equi volume is a multiplier of volume and price change. ... hi volume low price change over several days indicates accumulation / bottom .............. low volume high price change is panic action.

More explanation

This indicator is an oscillator designed to reveal the direction that a stock or commodity is moving with the least amount of resistance.

First, calculate the midpoint movement (MPM):

MPM = TH+TL - YH+YL
----- -----
2 2

Where TH = Today's High
YH = Yesterday's High
TL = Today's Low
YL = Yesterday's Low

If, for example, yesterday the stock had a high of 32 and a low of 31, its midpoint would be 31-1/2. If today it had a high of 34 and a low of 32, then the midpoint would be 33. The midpoint move would be 33 minus 32-1/2, or 1/2.

The next step is to calculate the box ratio. The box is the Equivolume box, which uses the day's high-to-low-price range for the vertical axis and the volume for the horizontal axis. Use a number of increments to represent volume - for example, 10,000 shares equal 1 unit, A 55,000 share day would have 5.5 units. For the height of the box, use 1/8 of a point for 1 unit. If a stock had a high of 24 and a low of 23-1/8, the number of units would be 7 units. Divide the volume units by the range units for the box ratio.

EMV = Midpoint Move
-------------
Box Ratio

The ease of movement value is:

EMV = 0.05
---------------- = 0.64
(5.5 / 7)