Chaikin Volatility Indicator
Shows the difference between two moving averages of a volume-weighted accumulation-distribution line. Comparing the spread between a security's high and low price quantifies volatility as a widening of the range between the high and the low price. An increase in the Volatility Indicator over a relatively short time period may indicate that a bottom is near. A decrease in volatility over a longer time period may indicate an approaching top. It is recommended to use the Chaikin Volatility in conjunction with a moving average system or price envelope.
To apply a Chaikin Volatility Indicator
- From within a chart, from the Edit menu select Studies.
- Choose Chaikin Volatility and click Add to add the study to the Applied Studies group.
- Complete parameters as necessary.
Once the study is defined, you can elect to uncheck/check to remove and add the study to your chart.