Chaikin Volatility

Overview

Chaikin Volatility measures the rate of change of the difference between high and low prices, providing a unique view of how the trading range is expanding or contracting. Unlike ATR, which smooths absolute range, Chaikin Volatility focuses on the acceleration of range changes. It is useful in stock and forex markets and can be explored alongside other volatility tools in our indicator guide library.

How It Works

Chaikin Volatility = [(EMA of High − Low today) − (EMA of High − Low N periods ago)] / (EMA of High − Low N periods ago) × 100. Default period is 10 for the EMA and 10 for the ROC. Rising values mean the high-low spread is widening; falling values mean it is narrowing.

Key Signals

• Sharply rising Chaikin Volatility = expanding ranges, strong move in progress.
• Chaikin Volatility peaking and declining = range expansion slowing, consolidation likely.
• Very low readings = compressed range, potential breakout setup.

Common Mistakes

• Using Chaikin Volatility for directional signals — it measures range change, not direction.
• Confusing it with Chaikin Money Flow or the Chaikin Oscillator — they are different indicators.
• Not combining Chaikin Volatility with a directional tool like moving averages or ADX.