Chaikin Volatility: percent change of the 10-bar EMA of high minus low, compared with 10 bars earlier.
Overview
Chaikin Volatility shows whether bar ranges are getting wider or narrower, in its own pane around zero. Above zero, the smoothed range is wider than it was 10 bars ago.
The line turns orange during expansion.
How it works
Smoothed range = EMA(high - low, 10). Chaikin Volatility = (smoothed range - smoothed range 10 bars ago) / smoothed range 10 bars ago x 100.
Both lengths can be changed. It compares two values of the same smoothed range, so the reading shows the speed of change, not the size of the range.
How to use it
- Use rising readings to see ranges expanding.
- Some traders watch a sharp rise after a quiet stretch as a sign of a new move.
- Use falling readings to see the market calming down.
- Pair it with a trend tool, since it shows no direction.
These are ways some traders read it, for learning. They are not trade signals.
Settings
| Setting | Default |
|---|---|
| Settings | |
| EMA LengthLength of the exponential moving average applied to the bar high-low range. | 10 |
| ROC LengthNumber of bars used for the rate of change of the smoothed high-low range. | 10 |
| Style | |
| CHV ColorColor of the Chaikin Volatility line. | #787b86 |
| ExpansionLine and fill color while the reading is above zero, when the smoothed range is wider than it was at the start of the ROC Length lookback. | #ff9800 |
Alerts
You can alert on its line crossing a value or the candle close (from the chart's + menu); checked while ZoroCharts is open.
Notes and limits
- Works on any symbol and timeframe; it only needs candle data.
- It looks only at high-low ranges, not gaps.
- Large positive readings are common after sudden moves.
Education only. Not financial advice. Indicators mark what happened on the chart; they do not predict what price will do. Trading futures, forex, crypto and other markets carries a high level of risk and may not be suitable for everyone.