Definition
The Chaikin Oscillator measures the momentum of the Accumulation/Distribution line. Positive values indicate buying pressure is accelerating; negative values indicate selling pressure. Crossovers above/below zero generate trading signals.
Formula
Chaikin Oscillator = 3-day EMA of A/D Line - 10-day EMA of A/D Line
Example
When the Chaikin Oscillator crosses above zero while price is rising, it confirms bullish momentum with strong accumulation. Divergences warn of potential reversals.
FAQ
What is Chaikin Oscillator?
The difference between 3-day and 10-day EMAs of the A/D line.
How do you calculate Chaikin Oscillator?
A common formula for Chaikin Oscillator is: Chaikin Oscillator = 3-day EMA of A/D Line - 10-day EMA of A/D Line
Why is Chaikin Oscillator important?
Chaikin Oscillator helps investors evaluate technical analysis and make more informed decisions.