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Volatility Chaikin's indicator you can measure the distinction between high and low prices which clearly demonstrates peaks or falls of the Forex market. There are two variants of interpreting the result.
The first method supposes that an increase in the volatility indicator within a rather short time period demonstrates the proximity of a bottom. While a volatility decrease within a longer time period shows a close top.
The second method supposes that Forex market peaks are usually accompanied by increased inconstancy and that the last stages of a Forex market bottom are usually accompanied by decreased inconstancy.

Source(s):

forexrealm.com

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Marc Chaikin measures volatility as the trading range between high and low for each period. This does not take trading gaps into account as Average True Range does.
Chaikin Volatility should be used in conjunction with a moving average system or price envelopes.

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Developed by Mark Chaikin, Chaikin's Volatility indicator measures the volatility of a security. High values indicate that prices are changing by a large amount during the day while Low values indicate that prices are staying relatively constant.

Used in forex trading, it measures the difference between high and low prices which shows peaks or falls of the Forex market.

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Chaikin's Volatility indicator compares the spread between a security's high and low prices. It quantifies volatility as a widening of the range between the high and the low price.
There are two ways to interpret this measure of volatility. One method assumes that market tops are generally accompanied by increased volatility (as investors get nervous and indecisive) and that the latter stages of a market bottom are generally accompanied by decreased volatility (as investors get bored).

Another method (Mr. Chaikin's) assumes that an increase in the Volatility indicator over a relatively short time period indicates that a bottom is near (e.g., a panic sell-off) and that a decrease in volatility over a longer time period indicates an approaching top (e.g., a mature bull market).

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1. A Chaikin Volatility peak occurs as the market retreats from a new high and enters a trading range.
2. The market ranges in a narrow band - note the low volatility.
The breakout from the range is not accompanied by a significant rise in volatility.
3. Volatility starts to rise as price rises above the recent high.
4. A sharp rise in volatility occurs prior to a new market peak.
5. The sharp decline in volatility signals that the market has lost impetus and a reversal is likely.

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Marc Chaikin measures volatility as the trading range between high and low for each period. This does not take trading gaps into account as Average True Range does.
Chaikin Volatility should be used in conjunction with a moving average system or price envelopes.

Look for sharp increases in volatility prior to market tops and bottoms, followed by low volatility as the market loses interest.

Source: Incredible charts

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An oscillator created by subtracting a 10-day EMA from a 3-day EMA of the accumulation/distribution line.

http://www.forexbydesign.com