Marc Chaikin's Volatility indicator determines volatility by applying an exponential moving average to the spread between the high and low prices.
A sharp increase in volatility in an upward trend could indicate a market top and a sharp increase in volatility in a downward trend could indicate a market bottom.
Volatility fluctuating around zero indicates that the price movement is relatively stable.
1. EMA = EMA(High - Low) for EMA Period
2. CV = (EMA - EMA (Change Period ago) / EMA (Change Period ago)) * 100