Chaikin Oscillator

The Chaikin Oscillator measures the momentum of the Accumulation/Distribution Line (ADL) by calculating the difference between a fast and slow EMA of the ADL. Developed by Marc Chaikin, it helps identify shifts in money flow and confirms price trends with volume analysis.

The oscillator is the MACD of the Accumulation/Distribution Line:

ADL = Previous ADL + ((Close - Low) - (High - Close)) / (High - Low) * Volume
Chaikin = EMA(ADL, fast) - EMA(ADL, slow)

Positive values indicate increasing buying pressure, negative values indicate increasing selling pressure.

• Above 0 — Accumulation (buying pressure dominates)
• Below 0 — Distribution (selling pressure dominates)
• Rising — Money flow accelerating in current direction
• Falling — Money flow decelerating
• Volume-weighted — Incorporates trading volume into analysis

Buy signals

• Chaikin crosses above 0 (shift to accumulation)
• Chaikin is rising while price is at support
• Bullish divergence: price makes lower low, Chaikin makes higher low

Sell signals

• Chaikin crosses below 0 (shift to distribution)
• Chaikin is falling while price is at resistance
• Bearish divergence: price makes higher high, Chaikin makes lower high

| Parameter | Default | Description | |-----------|---------|-------------| | Fast Period | 3 | Fast EMA of ADL | | Slow Period | 10 | Slow EMA of ADL |

| Condition | Meaning | |-----------|---------| | CHAIKIN(3,10) > 0 | Accumulation (buying pressure) | | CHAIKIN(3,10) < 0 | Distribution (selling pressure) | | CHAIKIN(3,10) cross_over 0 | Shift to buying pressure | | CHAIKIN(3,10) cross_under 0 | Shift to selling pressure |

• Chaikin Oscillator is essentially a volume-confirmed momentum indicator
• Divergence between Chaikin and price is one of the strongest signals
• Best used to confirm breakouts — a breakout with positive Chaikin is more reliable
• Short default fast period (3) makes it responsive but potentially noisy
• Works best on daily charts and higher; unreliable on very short timeframes