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Chaikin's Volatility

With the help of the 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.

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