Chaikin_Volatility - MetaTrader 5 Script - MT4/MT5 Resources

Chaikin Volatility Indicator.

Quoting from "Technical Analysis from A to Z" by S. Achelis:

There are two ways to interpret this volatility indicator. One approach assumes that market tops are typically followed by increased volatility (as investors become nervous and indecisive), while later market bottoms are typically followed by decreased volatility (as investors become bored).

An alternative approach (Mr. Chaikin's approach) assumes that an increase in volatility indicators over a relatively short period of time indicates that a bottom is near (e.g., panic selling), whereas a decrease in volatility over a longer period of time indicates that a top is near (e.g., a mature bull market). Like nearly all experienced investors, Mr. Chaikin advises you not to rely on any one indicator. He recommends using a moving average penetration or trading range system to confirm this (or any) indicator.

The indicator uses the SmoothAlgorithms.mqh library class (must be copied to terminal_data_folder\MQL5\Include). The use of the class "Average price series for intermediate calculations without using additional buffers" is described in detail in the article.

The indicator was first implemented in MQL4 and published in the code base on February 8, 2007.

Figure 1. Chaikin_Volatility Indicator

Attachment download

📎 chaikin_volatility.mq5 (7.26 KB)

📎 smoothalgorithms.mqh (134.03 KB)

Source: MQL5 #2432