# Chaikin Volatility

Chaikin Volatility measures the rate of change of an exponential moving average of the high-low range, plotting a percentage oscillator that rises as the daily trading range expands. Defaults follow the classic settings of a 10-period EMA of the range with a 10-period rate of change. This build is the indicator in its standard raw form as defined by Marc Chaikin.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Apr 13, 2020.
- Access: free.
- Concepts: [Chaikin Volatility](https://www.luxalgo.com/library/concept/chaikin-volatility/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=drbk9kziixomom03w0bs1dlu
- Page: https://www.luxalgo.com/library/indicator/chaikin-volatility/

The **Chaikin Volatility** indicator tracks how quickly the market's trading range is expanding or contracting. It smooths each bar's high-low spread with an exponential moving average, then plots the percentage change of that smoothed spread against its value a set number of bars earlier: above zero, average ranges are wider than before; below zero, the tape is compressing. Defaults follow the classic settings of a 10-period EMA of the range with a 10-period rate of change, and the build keeps the indicator in its standard raw form as defined by Marc Chaikin.

## How to Trade the Chaikin Volatility?

- **CHV above zero and rising**: bar ranges are widening: the environment of breakouts, climaxes, and news-driven tape, whichever way price heads.
- **CHV below zero**: the average spread is narrower than before: quiet, contracting tape, the condition breakout traders screen for.
- **Sharp upward spikes**: rapid expansion often marks emotional tape; Chaikin linked fast spikes during declines to capitulation near bottoms, a tendency, not a rule.
- **Breakout check**: a level break is more convincing when CHV turns positive alongside it. The expansion real moves require is present.

The line is direction-blind (it describes the width of bars, not which side is winning), so pair it with price structure or a directional tool.

## Chaikin Volatility Settings

- **EMA Length** (default 10): the smoothing applied to the bar high-low range. Longer values turn the line into a slow regime gauge; shorter values make it spiky and reactive.
- **ROC Length** (default 10): how many bars back the smoothed range is compared. Shorter values highlight sudden shifts; longer ones frame expansion against a broader baseline.

## Alerts

**Zero Cross Up** and **Zero Cross Down** alert conditions fire when the line crosses above or below zero.

## Frequently Asked Questions

### Does Chaikin Volatility tell me which way price will move?

No. It only measures whether bar ranges are widening or narrowing. A spike can accompany a breakout higher or a collapse lower; the directional read must come from price or a trend tool.

### When should I use Chaikin Volatility instead of ATR?

Use CHV when the question is how volatility is changing rather than how large it is: it outputs a percentage rate of change, while ATR gives a price-denominated level suited to stops. ATR also counts gaps through its true range; CHV, built on the intrabar spread, never sees them.

### How should I adjust the EMA Length and ROC Length?

The 10/10 defaults suit most charts. Raise both for slower volatility cycles; lower them for faster reads with more false flips around zero. The lengths are independent, so heavy smoothing can pair with a short comparison window or the reverse.

## Related indicators

- [Hot Zone Radar](https://www.luxalgo.com/library/indicator/hot-zone-radar/) (Volatility Percentile/rank): markdown at https://www.luxalgo.com/library/indicator/hot-zone-radar.md
- [Volatility Signature Plot](https://www.luxalgo.com/library/indicator/volatility-signature-plot/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/volatility-signature-plot.md
- [The Range Indicator](https://www.luxalgo.com/library/indicator/the-range-indicator/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/the-range-indicator.md
- [Jump Detection](https://www.luxalgo.com/library/indicator/jump-detection/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/jump-detection.md
- [Volatility of Volatility](https://www.luxalgo.com/library/indicator/volatility-of-volatility/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/volatility-of-volatility.md
- [Garman-Klass–Yang-Zhang Hybrid](https://www.luxalgo.com/library/indicator/garman-klass-yang-zhang-hybrid/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/garman-klass-yang-zhang-hybrid.md
- [GARCH-family Clustering](https://www.luxalgo.com/library/indicator/garch-family-clustering/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/garch-family-clustering.md
- [Kase Studies](https://www.luxalgo.com/library/indicator/kase-studies/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/kase-studies.md

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Source: https://www.luxalgo.com/library/indicator/chaikin-volatility/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/