Chaikin Oscillator

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DEFINITION of 'Chaikin Oscillator'

An oscillator which measures the accumulation distribution line of the MACD. The Chaikin Oscillator is calculated by subtracting a 10-day EMA from a 3-day EMA of the accumulation distribution line, and outlines the momentum implied by the accumulation distribution line.

BREAKING DOWN 'Chaikin Oscillator'

This indicator is named after its creator, Marc Chaikin. The goal of the Chaikin line is to recognize moving momentum levels within the MACD, more specifically the accumulation distribution line, in hopes of being able to act on said momentum. By being able to recognize momentum, technical traders hope that the momentum is the first step in the development of a trend that they can capitalize upon.

To learn more about the Chaikin Oscillator, check out What's the difference between Chaikin Money Flow (CMF) and Money Flow Index (MFI)?

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