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Chaikin Volatility
An indicator measuring the rate of change in an asset's high-low trading range, rather than the range itself.
Chaikin Volatility, developed by Marc Chaikin, measures the rate of change in an asset's high-low trading range over a set period — not the range itself, but how quickly that range is expanding or contracting.
A rising Chaikin Volatility reading means the trading range is widening; a falling reading means it's contracting, which some traders watch as a precursor to a potential reversal, particularly after a sustained trend. See Kaavon's dedicated Chaikin Volatility article for the full calculation.
Examples
- A sharp rise in Chaikin Volatility means the high-low trading range is expanding quickly, not that price is necessarily rising.
- Chaikin Volatility measures the rate of change in range, distinguishing it from ATR, which measures the range's absolute level.