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Description
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Developed by Marc Chaikin, it is a momentum oscillator which helps to understand buying and selling pressure using Accumulation/Distribution line
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It is calculated in the similar way as MACD with only difference of input. It uses difference EMA of A/D line for its value.
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It oscillates above and below zero level
- Chaikin Oscillator gives momentum characterestics to the Accumulation/Distribution Line.
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Interpretation
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Chaikin Osc crossing zero level upward gives rise to buy signal
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Chaikin Osc crossing zero level downward gives rise to sell signal
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As it uses another independent study A/D line as its input, divergence between indicator and price is very useful for getting reversal signals
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