How to Use the Chaikin Oscillator in Trading
ru.tradingview.comWhat Is the Chaikin Oscillator? The Chaikin Oscillator, developed by Marc Chaikin, is a momentum indicator designed to assist traders in identifying trends and predicting potential price movements.
It combines the accumulation/distribution (A/D) indicator – a well-known Chaikin volume indicator – with the moving average convergence divergence (MACD) formula to demonstrate money flow in or out of an asset. Definition and Characteristics At the heart of the Chaikin Oscillator is the A/D line, which uses an asset’s closing price relative to its high-low range, weighted by its volume, to determine whether an asset is being accumulated (bullish) or distributed (bearish).
Like MACD, the Chaikin Oscillator measures the distance between two moving averages. However, instead of closing prices, the Chaikin Oscillator is calculated using two exponential moving averages (EMAs) of the A/D line, typically 3 and 10.
The resulting indicator oscillates above and below a zero line. Positive values indicate buying pressure or accumulation, while negative values suggest selling pressure or distribution.
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