Chaikin Volatility
Analyze market volatility using the Chaikin Volatility indicator to predict potential breakouts.
Concept
Marc Chaikin's volatility indicator calculates the percentage change in the EMA of the high-low spread over N periods.
- Rising Chaikin = increasing volatility
- Falling Chaikin = decreasing volatility
- Often spikes before major moves
Trading
- Low volatility → prepare for breakout
- High volatility spike → potential reversal
- Combine with BB Squeeze for timing