Chaikin Volatility Indicator

Chaikin Volatility Indicator

Forex BUY SELL signals from the best Chaikins Volatility MT4 Momentum directional trend indicator. Divergence Convergence detector. Accurate trend indicator.

Chaikins Volatility technical indicator measures the distribution/accumulation line of the Moving Average Convergence-Divergence (MACD). Forex and stock traders may use the indicator for MT4 to identify momentum’s directional trends. Investors may also use the MACD indicator on accumulation-distribution instead of final prices, which is more precise.

The MACD may be signaling an upward trend, while you want to know whether underlying stock prices are more likely to rise or fall. Positive divergence occurs when the indicator rises above its baseline. The accumulation-distribution line depicts the starting point. Buyers may be entering the market, which would indicate the beginning of a bullish trend if that level is breached above.

Chaikins Volatility Indicator BUY/SELL Signals

The Chaikins Volatility Indicator is primarily based on the Buy and Sell signals. When the accumulation-distribution line crosses the center line, it indicates a possible purchasing opportunity following the bullish or positive divergence in the market. A prospective selling opportunity is confirmed when the center line crosses below the accumulation-distribution line, indicating a negative divergence. While positive divergence suggests that a stock’s price will rise soon due to an increase in accumulation, negative divergence predicts the opposite.

While positive divergence suggests that a stock’s price will rise soon due to an increase in accumulation, negative divergence predicts the opposite.

Conclusion
The Chaikins Volatility technical indicator provides reliable trading indications. However, when combined with other trading indicators, it works the best.