Chaikin Volatility Indicator

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. 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. As shown below, an increase in volatility can indicate a market bottom. See also: Chaikin Money Flow (CMF), Chaikin Oscillator

Chaikin Volatility Indicator

Chart courtesy of Prophet Financial Systems (www.prophet.net)