How it is calculated
First an EMA of high minus low over the length, seeded with the simple mean of the first ranges. Chaikin volatility is the percentage change of that EMA against its value roc bars earlier: the difference divided by the earlier value, times 100. If the earlier EMA is 0, after only flat bars, there is no value. After Marc Chaikin.
Reference: Chaikin (rate of change of an EMA of high minus low)
How to read it
Above 0 the bars are wider than roc bars ago, below 0 narrower. Chaikin read a sharp rise in a short time as fear near bottoms and a slow decline over a long time as typical of mature tops; that is a tendency, not a rule. Gaps between bars do not count, only high minus low.
In a strategy
Wait for expanding volatility before a breakout entry, for example require ctx.ind("chv", length=10, roc=10) above 0, or open no new trades while it falls sharply.
Inputs
| Input | Type | Default | Range or choices |
|---|---|---|---|
Lengthlength | Whole number | 10 | min 2, max 5000 |
ROC lengthroc | Whole number | 10 | min 1, max 5000 |
What it draws
| Line | Drawn as |
|---|---|
| CHV | Line |
Guide lines at 0.
Used in
No strategy template reads it yet.