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Chaikin Volatility Indicator Questions? (Chaikin's Volatility Indicator question?)

author EAcpu | 5 reads | 0 comments |
I haven't found any significant method or settings for the Chaikin Volatility Indicator . You have your typical general definition, which shows volatility and so on. I'm looking for information on how to apply this to any trading rules.

I like to use volatility as a variable in my trading, but this is tempered by Bollinger Bands squeeze setups and NR7 or narrow range bars that show volatility slowing down. Most of these setups have rules whereby slower volatility leads to higher volatility, and vice versa.

If you notice in the chart the chaikin volatility indicator (10 and 6 periods) signals breakouts of the first 3 major signals very well. However, it does not provide any signal about an eventual breakout!

Many trading authors explain that it is unwise to trade using many similar indicators. RSI, MACD, CCI, Stoichastics, they are basically all oscillators and filling the screen with indicators of the same style is redundant. As far as I know the Chaikins Volatility Indicator is not an oscillator? Wouldn't it be "redundant" to add this indicator to some settings so far?

Anyone who trades with the Chaikins Volatility Indicator, or like me happened to notice that just like the Stochastic indicator, there just happen to be clear periods of volatility in the price ?

I'm wondering if different states of the trend/range affect the signal of this indicator - just like it does other indicators?

Any ideas?

Lippi
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