The Chaikin Volatility (CHV) Metatrader 5 forex indicator is used to calculate the spread between the maximum and minimum prices.
The indicator does not take into account gaps that are present within price actions.
It gauges the value of volatility based on the distance between the maximum and minimum prices.
The idea behind the Chaikin volatility indicator is simple, a sharp or sudden growth in volume is a signal showing price reaching their minimum (just like when a currency pair is sold in panic), while a sharp or sudden dip in volatility signals price attaining its peak (just as seen in most bull markets).
The EUR/USD H1 chart below displays the Chaikin Volatility (CHV) Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the dodger blue line of the Chaikin Volatility (CHV) Metatrader 5 forex indicator increases over a period of time.
Sell Signal: Go short when the dodger blue line of the Chaikin Volatility (CHV) Metatrader 5 forex indicator decreases over a period of time.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the dodger blue line of the Chaikin Volatility (CHV) indicator decreases or its readings drops.
Exit sell trade: Close all sell orders if while a bearish trend is running, the dodger blue line of the Chaikin Volatility (CHV) indicator increases or its readings spikes.
Tips: We advise using moving averages and/or envelopes as a confirmation tool for the Chaikin Volatility (CHV) signal setups.
The indicator should be deployed during non-trending market conditions for best performance.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Smoothing period, CHV period, Smoothing method), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the chv.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)