This is a trading item or a component that was created using QuantShare by one of our members.
This item can be downloaded and used by QuantShare Trading Software.
Trading items are of different types. There are data downloaders, trading indicators, trading systems, watchlists, composites/indices...
You can use this item and hundreds of others for free by downloading QuantShare.
Top Reasons Why You Should Use QuantShare:
Works with US and international markets (stock, forex, options, futures, ETF...)
Offers you the tools that will help you become a profitable trader
Allows you to implement any trading ideas
Exchange items and ideas with other QuantShare users
Our support team is very responsive and will answer any of your questions
We will implement any features you suggest
Very low price and much more features than the majority of other trading software
To determine the volatility of a financial time-series, such as stock close prices, the Chaikin Volatility trading indicator measures the range between high and low values. Unlike the ATR or Average True Range, this indicator does not consider gaps. Gaps are accounted by ATR because its formula calculates volatility based on current bar high and low prices in addition to yesterday's close price.
Chaikin Volatility was developed by Marc Chaikin. Other technical analysis indicators created by Marc include Chaikin A/D Line (QuantShare function: AD), Chaikin A/D Oscillator (QuantShare function: ADOsc), Chaikin Money Flow Indicator and Chaikin Volume Accumulation Oscillator.
Trading signals are generated when the volatility, as measured by this indicator, increases sharply then decreases. This indicates that the market lost interest and that a price reversal is occurring. An increase in volatility often indicates a market top or bottom.
The Chaikin Volatility function name is "ChaikinVol" and it is calculated by taking the 10 bar rate of change of a 10 bar exponential moving average based on the difference between the high and low prices. The exponential moving average period should be specified as the first parameter of this function and the volatility smoothing (Rate of change period) should be specified as the second parameter.
To plot the Chaikin Volatility on a chart, type:
plot(ChaikinVol(10,10), "", colorBlue);
