Is this an accurate portrayal of the methodology? I thought EV calculates effective volume based on as small as a penny a share change from one minute to the next.

Adam, you are right. I didn't give the complete picture: EV is the change in minute to minute price, divided by the difference between high and low during that minute (which can be modified by the previous minute's close if higher or lower), times the volume during that minute.

Maybe a more specific example would help.

In one minute a share price changes from 20.00 to 20.01 with high of 20.10 and low of 19.95, and volume of 100,000 shares. The EV for that minute is:

EV1 = (20.01 - 20.00 + 0.01) / (20.10 - 19.95 + 0.01) * 100,000 = 0.02 / 0.16 * 100,000 = 12,500

If we have a smaller volume minute but with a larger change in price we may end up with a higher EV. Let's say the price changed from 19.98 to 20.09 but at only 1/5 the volume of the previous example (and high and low the same). EV then would be:

EV2 = (20.09 - 19.98 + 0.01) / (20.10 - 19.95 + 0.01) * 20,000 = 0.12 / 0.16 * 20,000 = 15,000

Which of these two examples would we think is more likely to be "stealth" accumulation? That is my question.

(BTW, I don't know nor am implying I know the answer. I'd just like to be able to learn from what others may have done in this regard.)

-Mike