Chaikin Oscillator

What is the 'Chaikin Oscillator'

The Chaikin oscillator is 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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RELATED FAQS
  1. How do I create a basic trading strategy with a Chaikin Oscillator?

    Create basic trading strategies using the Chaikin Oscillator to identify possible market turns in direction and profitable ... Read Answer >>
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    The similarities between Chaikin money flow and the money flow index end with the idea that they are both commonly used by ... Read Answer >>
  3. What are the most popular volume oscillators in technical analysis?

    Learn about the most popular volume oscillator indicators used in technical analysis, and see how they are calculated and ... Read Answer >>
  4. Why is the Money Flow important for traders and analysts?

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  5. What are the main differences between Money Flow & Money Flow Index (MFI)?

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