📊 TECHNICAL
Chaikin Oscillator
A MACD-style oscillator applied to the Accumulation/Distribution Line, measuring the momentum of money flow to spot shifts in buying or selling pressure early.
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Live Demo — Chaikin Oscillator applied to NIFTY 50 (illustrative)
PriceEMA(9)EMA(21)SMA(20)
What is the Chaikin Oscillator?
Developed by Marc Chaikin, it measures the momentum of the Accumulation/Distribution (A/D) Line by taking the difference between a fast and slow EMA of that line — the same construction MACD uses on price, but applied to a volume-flow indicator.
Formula
MF Multiplier = ((Close-Low)-(High-Close))/(High-Low)
MF Volume = MF Multiplier * Volume
A/D Line(t) = A/D Line(t-1) + MF Volume(t)
Chaikin Oscillator = EMA(3, A/D Line) - EMA(10, A/D Line)Parameters
| Parameter | Default | Description |
|---|---|---|
| Fast EMA length | 3 | Short EMA period applied to the A/D Line |
| Slow EMA length | 10 | Long EMA period applied to the A/D Line |
| Source | A/D Line | Built on the cumulative Accumulation/Distribution Line |
Signal Interpretation
- A cross above zero signals the A/D Line's short-term momentum turning up.
- A cross below zero signals momentum turning down.
- Divergence between the oscillator and price can warn of weakening accumulation.
- A sharp move away from zero shows accelerating accumulation or distribution.
- Signals tend to lead simple A/D Line crossovers.
Tips & Best Practices
- Use to time entries around an already-identified trend rather than as a standalone trend indicator.
- Zero-line crosses agreeing with the broader price trend are more reliable.
- Combine with plain Volume or CVD to check whether volume backing the move is expanding or fading.