What it does
Chaikin Volatility measures the rate of change of the trading range. It takes an EMA (typically 10-period) of the high-low spread, then plots the percentage change of that EMA over a lookback (typically 10 bars). Rising values mean ranges are widening (volatility expanding); falling values mean ranges are narrowing. Unlike ATR it ignores gaps because it only uses intrabar high-low.
How to add it
Click Indicators (ƒx) in the header.
Search “Chaikin Volatility” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- A sharp spike in Chaikin Volatility often accompanies panic selling into a bottom; Chaikin himself linked volatility peaks with market lows.
- A slow decline in volatility over many bars indicates a maturing, disinterested market, often near tops or before a range forms.
- Low, flat readings mark compression; combine with a breakout tool since expansions frequently start from these lulls.
- Use it as a regime filter: favor breakout strategies when it is rising and mean-reversion strategies when it is low and falling.
- Confirm interpretation with price location, since a volatility spike means opposite things at highs versus lows.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| EMA Period | number | 10 | 1–200 |
| ROC Period | number | 10 | 1–200 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| Chaikin Vol | line | #AB47BC |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 0 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Reference levels
| Level | Value |
|---|---|
| 0 | 0 |
Level values, colors and line styles are editable in settings.
Tips
- The pane keeps its height in saved layouts, so size it once and it survives reloads.
- Resize the pane by dragging its divider; collapse it from the legend row when you need the space back.
- Use Add to favorites in the legend menu; starred studies surface at the top of the picker.
Watch out for
- It ignores overnight gaps entirely, understating true volatility in gapping markets; ATR is more complete there.
- It gives no direction, and its 'spike = bottom' heuristic fails in extended crashes where volatility stays elevated.