The color of the boxes is dictated by the close.

When the close is above the

previous
close, then the box is painted black, and when the close is below the previous
close,
then it is painted red.
In order to maintain aspect ratios and to keep the charts meaningful, the
volume is
then normalized by dividing the actual volume for that period, by the total of
all the
volume displayed on the chart. Whilst time has been removed from the boxes
themselves, it still appears, to help keep the chart in context for the trading
session.
Whilst it is difficult to imagine trading using these boxes and moving away
from
candlesticks, many of the techniques I have explained in this book will still
apply, as
they are equally valid. The focus using this approach is on the box, its shape,
and
location within any trend. Breakouts from congestion are just as important for
equivolume trading as with more conventional VPA, and here we might
expect to
see what is often referred to as a “power box”, which is high volume and
wide price.
In VPA terms, above average volume and a wide spread candle on the
breakout from
congestion. The principles are much the same, it’s the display which is very
different.
At this point let me add my own personal thoughts here.
Whilst I like the concept of showing the price and volume together on one
‘box’
which instantly reveals whether we have a high/low combination, anomalies,
or an
average/average combination which may be normal, the issue I have is the
removal
of time. After all, as Wykcoff himself stated, it is the cause and effect which
holds
the key to the development of the trend. In other words, time is the third
element of
the volume and price relationship. Remove time, and the approach becomes
two
dimensional, and not three dimensional, and as I hope I have made clear
throughout
the book, the longer a market is in a consolidation phase, then the greater will
be the
consequent trend once the market breaks out. Consolidation phases are where
trends
are born or pause before moving on, and if you remove the time element,
then to me,
this removes one of the pillars of Volume Price Analysis which is the
judgment of
the power of any subsequent trend.
This is just my own personal view, and I would encourage you to explore the
idea of
equivolume further for yourself. The other issue is that candlestick analysis
no
longer plays a part, but help is at hand here, with candle volume charts.