Chaikin Volatility (CHV)
Chaikin Volatility (CHV) is one technical indicator used in forex technical analysis. Many traders use this indicator to measure the distinction between high and low prices which clearly demonstrates peaks or falls of the Forex market.
Chaikin quantifies volatility as a widening of the range between the high and the low price of a security. This does not take trading gaps into account as Average True Range does.
According to Chaikin’s interpretation, a growth of volume indicator in a relatively short space of time means that the prices approach their minimum (like when the securities are sold in panic), while a decrease of volatility in a longer period of time indicates that the prices are on the peak (for example, in the conditions of a mature bull market).
It’s recommended using Moving Averages and Envelopes as a confirmation of Chaikin’s indicator signals.
- A peak of indicator’s reading appears when market prices rollaway from the new summit and the market turns flat.
- A flat market resembles low volatility. An exit from the side movement (from a flat) is not accompanied by a significant increase of volatility.
- Volatility grows along with the increase in price level over the previous maximum.
- A rise of Chaikin’s indicator level continues till a new price peak is reached.
- A rapid decrease of volatility means that the movement is slowing down and that a back-roll is possible.
Chaikin’s volatility indicator calculates the spread between the maximum and minimum prices. It judges the value of volatility basing on the amplitude between the maximum and the minimum. Unlike Average True Range, Chaikin’s indicator doesn’t take gaps into account. (full article)
The Chaikin Volatility Indicator uses the percent change of two moving averages of a volume weighted accumulation-distribution line to determine the volatility of a financial data series. (full article)
With the help of the Volatility Chaikin’s indicator you can measure the distinction between high and low prices which clearly demonstrates peaks or falls of the Forex market. (full article)
- Negative Volume Index (NVI)
- MACD – Moving Average Convergence / Divergence
- Mesa Sine Wave
- Median Price
- McClellan Oscillator
- Mass Index (MI)
- Market Facilitation Index
- Linear Regression
- Klinger Oscillator (KO)
- Keltner Channel (KC)
- Kagi Chart
- Intraday Momentum (IMI)
- Ichimoku Kinko Hyo (IKH)
- Historical (Natenberg) Volatility
- Herrick Payoff Index
- Haurlan Index
- Full Stochastic Oscillator