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Chaikin Volatility Indicator

Trading Term

Shows the difference between two moving averages of a volume-weighted accumulation-distribution line. Comparing the spread between a security’s high and low price quantifies volatility as a widening of the range between the high and the low price. An increase in the Volatility Indicator over a relatively short time period may indicate that a bottom is near. A decrease in volatility over a longer time period may indicate an approaching top. It is recommended to use the Chaikin Volatility in conjunction with a moving average system or price envelope.

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