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  • Table of Contents
    • Overview
      • Why Analyze Securities?
      • Technical Analysis
      • Fundamental Analysis
      • Random Walk vs. Non-Random Walk
      • Asset Allocation and Diversification
      • John Murphy's 10 Laws of Technical Trading
      • John Murphy's "Charting Made Easy" eBook
      • Technical Analysis 101
        • TA 101 – Part 1
        • TA 101 – Part 2
        • TA 101 – Part 3
        • TA 101 – Part 4
        • TA 101 – Part 5
        • TA 101 – Part 6
        • TA 101 – Part 7
        • TA 101 – Part 8
        • TA 101 – Part 9
        • TA 101 – Part 10
        • TA 101 – Part 11
        • TA 101 – Part 12
        • TA 101 – Part 13
        • TA 101 – Part 14
        • TA 101 – Part 15
        • TA 101 – Part 16
        • TA 101 – Part 17
      • Irrational Exuberance
      • Cognitive Biases
      • Arthur Hill on Goals, Style and Strategy
      • Arthur Hill on Moving Average Crossovers
      • Multicollinearity
      • "The Trader's Journal" by Gatis Roze
        • Stage 1: Money Management
        • Stage 2: Business of Investing
        • Stage 3: The Investor Self
        • Stage 4: Market Analysis
        • Stage 5: Routines
        • Stage 6: Stalking Your Trade
        • Stage 7: Buying
        • Stage 8: Monitoring Your Investments
        • Stage 9: Selling
        • Stage 10: Re-Examine, Refine, Re-Enhance
        • Additional Reading
      • Bob Farrell's 10 Rules
      • Richard Rhodes' Trading Rules
      • Donchian Trading Guidelines
      • Why and How To Use Correlation
    • Chart Analysis
      • What Are Charts?
      • Support & Resistance
      • Trend Lines
      • Gaps and Gap Analysis
      • Introduction to Chart Patterns
      • Chart Patterns
        • Broadening Top or Megaphone Top
        • Double Top Reversal
        • Double Bottom Reversal
        • Head and Shoulders Top
        • Head and Shoulders Bottom
        • Falling Wedge
        • Rising Wedge
        • Rounding Bottom
        • Triple Top Reversal
        • Triple Bottom Reversal
        • Bump and Run Reversal
        • Flag, Pennant
        • Symmetrical Triangle
        • Ascending Triangle
        • Descending Triangle
        • Rectangle
        • Price Channel
        • Measured Move—Bullish
        • Measured Move—Bearish
        • Cup With Handle
      • Chart Types
        • Arms CandleVolume
        • CandleVolume
        • Elder Impulse System
        • EquiVolume
        • Heikin-Ashi Candlesticks
        • Kagi Charts
        • Renko Charts
        • Three Line Break Charts
        • MarketCarpets
        • Relative Rotation Graphs (RRG Charts)
        • Seasonality Charts
        • Yield Curve
      • Candlestick Charts
        • Introduction to Candlesticks
        • Candlesticks and Traditional Chart Analysis
        • Candlesticks and Support
        • Candlesticks and Resistance
        • Candlestick Bullish Reversal Patterns
        • Candlestick Bearish Reversal Patterns
        • Candlestick Pattern Dictionary
      • Point and Figure Charts
        • Point and Figure Basics
          • Introduction to Point & Figure Charts
          • Point & Figure Scaling and Timeframes
          • P&F Trend Lines
        • Classic Patterns
          • P&F Bullish Breakouts
          • P&F Bearish Breakdowns
          • P&F Signal Reversed
          • P&F Catapults
          • P&F Triangles
          • P&F Bull & Bear Traps
        • P&F Price Objectives
          • P&F Price Objectives: Breakout and Reversal Method
          • P&F Price Objectives: Horizontal Counts
          • P&F Price Objectives: Vertical Counts
        • Point & Figure Indicators
        • P&F Scans and Alerts
          • P&F Pattern Alerts
      • Chart Annotation Tools
        • Andrews' Pitchfork
        • Stock Market Cycles
        • Fibonacci Retracements
        • Fibonacci Arcs
        • Fibonacci Fans
        • Fibonacci Time Zones
        • Quadrant Lines
        • Raff Regression Channel
        • Speed Resistance Lines
    • Technical Indicators & Overlays
      • Introduction to Technical Indicators and Oscillators
      • Technical Indicators
        • Accumulation/Distribution Line
        • Alligator Indicator
        • Aroon
        • Aroon Oscillator
        • ATR Bands
        • ATR Trailing Stops
        • Average Directional Index (ADX)
        • Average True Range (ATR) and Average True Range Percent (ATRP)
        • Balance of Power (BOP)
        • Bollinger BandWidth
        • %B Indicator
        • Chaikin Money Flow (CMF)
        • Chaikin Oscillator
        • Chande Trend Meter (CTM)
        • CMB Composite Index
        • Commodity Channel Index (CCI)
        • ConnorsRSI
        • Coppock Curve
        • Correlation Coefficient
        • DecisionPoint Price Momentum Oscillator (PMO)
        • Detrended Price Oscillator (DPO)
        • Distance From Highs
        • Distance From Lows
        • Distance To Highs
        • Distance To Lows
        • Distance From Moving Average
        • Ease of Movement (EMV)
        • Force Index
        • Gopalakrishnan Range Index
        • High Low Bands
        • High Minus Low
        • Highest High Value
        • Linear Regression R2
        • Lowest Low Value
        • Mass Index
        • MACD (Moving Average Convergence/Divergence) Oscillator
        • MACD-Histogram
        • MACD-V
        • MACD-V Histogram
        • Median Price
        • Money Flow Index (MFI)
        • Negative Volume Index (NVI)
        • On Balance Volume (OBV)
        • Percentage Price Oscillator (PPO)
        • Percentage Volume Oscillator (PVO)
        • Performance Spread
        • Price Relative/Relative Strength
        • Pring's Know Sure Thing (KST)
        • Pring's Special K
        • Rate of Change (ROC)
        • Relative Strength Index (RSI)
        • Relative Volume (RVOL)
        • RRG Relative Strength
        • StockCharts Technical Rank
        • Slope
        • Standard Deviation (Volatility)
        • Stochastic Oscillator (Fast, Slow, and Full)
        • StochRSI
        • Traffic Light
        • TRIX
        • True Range
        • True Strength Index
        • TTM Squeeze
        • Typical Price
        • Ulcer Index
        • Ultimate Oscillator
        • Vortex Indicator
        • Weighted Close
        • Williams %R
      • Technical Overlays
        • Anchored VWAP
        • Bollinger Bands
        • Chandelier Exit
        • Double Exponential Moving Average (DEMA)
        • Hull Moving Average (HMA)
        • Ichimoku Cloud
        • Kaufman's Adaptive Moving Average (KAMA)
        • Keltner Channels
        • Linear Regression Forecast
        • Linear Regression Intercept
        • Moving Averages—Simple and Exponential
        • Moving Average Ribbon
        • Moving Average Envelopes
        • Parabolic SAR
        • Pivot Points
        • Price Channels
        • Triple Exponential Moving Average (TEMA)
        • Volume-by-Price
        • Volume-Weighted Average Price (VWAP)
        • ZigZag
    • Market Indicators
      • Introduction to Market Indicators
        • Market Indicator Dictionary
      • Advance-Decline Line
      • Advance-Decline Percent
      • Advance-Decline Volume Line
      • Advance-Decline Volume Percent
      • Arms Index (TRIN)
      • Bullish Percent Index (BPI)
      • DecisionPoint Intermediate-Term Breadth Momentum Oscillator (ITBM)
      • DecisionPoint Intermediate-Term Volume Momentum Oscillator (ITVM)
      • DecisionPoint Swenlin Trading Oscillator (STO)
      • High-Low Index
      • High-Low Percent
      • McClellan Oscillator
      • McClellan Summation Index
      • Net New 52-Week Highs
      • Percent Above Moving Average
      • Pring's Bottom Fisher
      • Pring's Diffusion Indicators
      • Pring's Inflation and Deflation Indexes
      • Pring's Net New High Indicators
      • Put/Call Ratio
      • Record High Percent
      • Volatility Indices
    • Market Analysis
      • Dow Theory
      • Sector Rotation Analysis
      • Intermarket Analysis
      • The DecisionPoint Chart Gallery
      • DecisionPoint Rydex Asset Analysis
      • Wyckoff Analysis Articles
        • Wyckoff Market Analysis
        • Wyckoff Stock Analysis
        • The Wyckoff Method: A Tutorial
      • Elliott Wave Analysis Articles
        • Introduction to Elliott Wave Theory
        • Identifying Elliott Wave Patterns
        • Guidelines for Applying Elliott Wave Theory
    • Trading Strategies & Models
      • DecisionPoint Trend Model
      • Trading Strategies
        • Bollinger Band Squeeze
        • CCI Correction
        • CVR3 VIX Market Timing
        • Faber's Sector Rotation Trading Strategy
        • Gap Trading Strategies
        • Harmonic Patterns
        • Hindenburg Omen
        • Ichimoku Cloud Trading Strategies
        • The 'Last' Stochastic Technique
        • MACD Zero-Line Crosses With Swing Points
        • Moving Average Trading Strategies
          • Finding Support and Resistance in Moving Averages
          • Guppy Multiple Moving Average: An MA Ribbon Designed to Tip the Market’s Hand
          • How To Trade Price-to-Moving Average Crossovers
          • Trading the Bounce: Finding Support and Resistance in Moving Averages
          • Trading the Death Cross
          • Trading Using the Golden Cross
          • Using the 5-8-13 EMA Crossover for Short-Term Trades
        • Moving Momentum
        • Narrow Range Day NR7
        • Percent Above 50-day SMA
        • Percent B Money Flow
        • The Pre-Holiday Effect
        • RSI(2)
        • Six-Month Cycle MACD
        • Slope Performance Trend
        • Stochastic Pop and Drop
        • Swing Charting
        • Trend Quantification and Asset Allocation
    • Index & Market Indicator Catalog
      • Advance-Decline Indicators
      • Cboe Indices and Indicators
      • CME Futures and Spot Prices
      • DecisionPoint Sentiment Indicators
      • Dow Jones Breadth Indicators
      • Dow Jones Global Indices
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      • Dow Jones Titans Indices
      • Dow Jones US Indices
      • Economic Indicators
      • ICE Futures and Spot Prices
      • Intellidex Indices
      • MSCI Indices
      • New 52-week Highs and Lows for Exchanges
      • NYSE Arca Equity Indices
      • NYSE Equity Indices
      • Philadelphia Indices
      • S&P 500 Sector and Industry Groups
      • S&P GSCI Indices
      • StockCharts AD Percent
      • StockCharts AD Volume Percent
      • StockCharts Bullish Percent Index
      • StockCharts High-Low Index
      • StockCharts High-Low Percent
      • StockCharts Percent Above Moving Average
      • StockCharts Pseudo Symbols
      • StockCharts Record High Percent
      • StockCharts Theoretical Indices
      • US Treasury Yields
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On this page
  • What Are CandleVolume Charts?
  • Calculating CandleVolume Charts
  • Candlestick Reversal
  • Breakout Validation
  • The Bottom Line
  • CandleVolume and SharpCharts
  • Further Study

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  1. Table of Contents
  2. Chart Analysis
  3. Chart Types

CandleVolume

PreviousArms CandleVolumeNextElder Impulse System

Last updated 10 months ago

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What Are CandleVolume Charts?

As its name implies, CandleVolume charts merge volume into candlesticks. This allows chartists to analyze price action and volume with one look at the price chart. CandleVolume charts are similar to but offer more information because candlesticks are used instead of high-low boxes. This means chartists can see the open and close for each period, as well as the high and the low. CandleVolume charts can be used just like normal charts. Chartists can look for candlestick patterns and classical chart patterns, such as triangles and wedges, to generate signals.

Calculating CandleVolume Charts

A CandleVolume candlestick comprises five components—open, high, low, close, and volume. As with , the open and close form the candlestick's body, while the high and low form the upper and lower shadows.

Volume determines the width of the candlestick. Wide candlesticks form when volume is high, while narrow candlesticks form when volume is low. The chart below shows basic black and white (filled and hollow) candlesticks based on CandleVolume. Wide and hollow candlesticks form when the close is well above the open and volume is high. Wide and filled candlesticks form when the close is well below the open and volume is high. Narrow candlesticks form when volume is relatively low.

You can also colorize candlesticks and volume bars to identify up and down periods. The chart below shows a colorized version of the chart of the same stock over the same period as the above chart.

In the Chart Attributes section below the chart, you can check the Color Prices and Color Volume box to colorize. A hollow candlestick still means the close was above the open, and a filled candlestick means the close was below the open. The red candlestick means the close was below the prior close, while a black candlestick means the close was above the prior close. The same applies to the red and green volume bars.

When calculating CandleVolume charts, note that volume is normalized to show it as a percentage of the look-back period. For a four-month daily chart, each day's volume would be divided by total volume for the look-back period (four months). As such, the width of each box represents the percentage of total volume for the look-back period. Big-volume days occupy more space on the x-axis (horizontal) than low-volume days.

The date axis is usually not uniform on CandleVolume charts with varying widths. Some weeks will extend longer because of wide candlesticks, while others will be shorter because of narrow candlesticks.

The chart below shows Pfizer (PFE) with normal candlesticks and a normal x-axis.

In the next chart (see below), the CandleVolume changes the x-axis because volume was much higher in June than in prior months.

Candlestick Reversal

CandleVolume charts can be used to validate candlestick reversal patterns. A candlestick reversal pattern on high volume carries more weight than one on low volume.

The first chart below shows Transocean (RIG) forming a wide hammer in mid-April. The second chart shows RIG forming a wide bearish engulfing in mid-May. The third chart shows price action after these patterns.

Breakout Validation

Volume is important in chart analysis, especially in validating support and resistance breaks. Volume is fuel—an upside breakout on high volume is more bullish than a breakout on low volume.

An upside breakout on high volume shows strong demand that is less likely to fade away. The chart below shows Google (GOOG) with a CandleVolume chart ending on April 19. Notice how the stock broke above resistance with a wide hollow candlestick. This shows high volume (strong demand) on the breakout. The second chart shows what happened next. Not all setups pay off quite this well, but CandleVolume can help separate the pretenders from the contenders.

The Bottom Line


CandleVolume and SharpCharts

In SharpCharts you can find CandleVolume under Chart Attributes and Type. There is also a volume option directly underneath. Choose to have volume off, separate, or as an overlay. Volume can also be skipped (off) because it's reflected on the CandleVolume chart.

The example below shows the check boxes for selecting Color Prices and Color Volume.

Further Study

CandleVolume charts put price action and volume together for easy visual analysis. Because these candlesticks share the same features as normal candlesticks, chartists can use them to validate candlestick patterns. CandleVolume charts can also be used to affirm a support test or validate a resistance level. A bounce off support with a wide candlestick is stronger than a bounce with a narrow candlestick. The same is true for a decline from resistance. Basically, almost anything done on normal candlestick charts can be applied to CandleVolume charts. for a live CandleVolume chart.

Gregory Morris

Steve Nison

Click here
Candlestick Charting Explained
Japanese Candlestick Charting Techniques
EquiVolume charts
normal candlesticks
CandleVolume chart shows wide and narrow hollow and filled candlesticks.
Colorized version of CandleVolume chart.
CandleVolume chart with normal candlesticks and normal x-axis.
CandleVolume chart with different candlestick width resulting in changes in the x-axis.
SharpCharts Chart Attribute settings for CandleVolume charts.
Chart displaying wide and narrow hollow and filled CandleVolume charts from StockCharts.com
Chart showing a colorized version of a CandleVolume chart from StockCharts.com
Chart displaying CandleVolume with normal candlesticks and normal x-axis
Example of a CandleVolume chart with different candlestick widths resulting in changes in the x-axis from StockCharts.com
SharpCharts settings for CandleVolume charts in StockCharts.com