Chaikins Oscillator

Chaikin's Oscillator Interpretation:

This indicator can emphasize the end of a trend when prices reach a new high or a new low while the Chaikin Oscillator does not reach a new extreme and change direction. The divergence between the indicator and the price quote identify major reversal points and give strong buy or sell signals.

A bullish divergence occurs when the stock price makes new lows while the indicator fails to make new lows. A bearish divergence occurs when the stock price makes new highs while the indicator fails to make new highs.

Chaikin's Oscillator Calculation:

The Chaikin's Oscillator is created by subtracting an x period exponential moving average of the Accumulation Distribution Line. (default values : x=10 and y=3)

Return from Chaikins Oscillator to Using Indicators

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