# Chaikin Volatility Indicator

The Chaikin Volatility Indicator is constructed as the difference between a moving average of high-low price range today versus the high-low moving average n days ago.

# Chaikin Volatility Indicator

The **Chaikin Volatility Indicator **represents the difference between daily high and low stock prices. The Chaikin Volatility indicator is one of a number of indicators developed by Marc Chaikin.

## Chaikin Volatility Indicator Calculation

The Chaikin Volatility Indicator is constructed as the difference between a moving average of high-low price range today versus the high-low moving average n days ago.

## Chaikin Volatility Indicator Interretation

Increases in the Chaikin Volatility Indicator reflect increased volatility in the stock price which potentially signals the end of a price trend. The indicator will peak when the stock price reaches a new high or a new low.

As is typical with indicators, it is best not to rely only on one but to use a moving average crossover or band trading strategy to make a trading decision. Interpretations of the Chaikin Volatility Indicator vary but, in general, it is the change in volatility that serves as a valuable tool for spotting possible trend reversals.