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Accumulation/Distribution Line
ADX (Wilder's DMI)
Average True Range (ATR)
Chaikin Money Flow (CMF)
Chaikin Oscillator
Commodity Channel Index (CCI)
Comparative Relative Strength
MACD
MACD Histogram
Momentum
On Balance Volume (OBV)
Price Oscillator (PPO)
Rate of Change (ROC)
Relative Strength Index (RSI)
Stochastic Oscillator
Volume
Volume Oscillator (PVO)
Williams %R

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Chaikin Oscillator

The Chaikin Oscillator is a moving average oscillator based on the accumulation/distribution line. It is an indicator of the accumulation/distribution…i.e. an indicator of an indicator.

The Chaikin Oscillator is calculated by subtracting the 10-period exponential moving average of the accumulation/distribution line from the 3-period exponential moving average of the accumulation/distribution line.

A buy signal is offered when the oscillator crosses over the centerline while sell signal is offered when the oscillator crosses down through the centerline.

Also, like many indicators, a divergence between the pricing action and the indicator's movement is a warning that the underlying issue's trend may reverse in the short term. So if a stock trends up while the Chaikin Oscillator rolls over and heads down, the stock will very likely top out soon after. On the other hand, if a stock trends down while the oscillator bottoms out and begins to move up, the stock will likely follow suit.




The most powerful use of most chart indicators is when divergences form. Indicators should support and confirm a stock's move, and when they don't, the indicator usually wins. In the above chart, each time a negative divergence occurred between the stock chart and the Chaikin Oscillator, the stock fell, and the one time a positive divergence formed, the stock rallied.



This PG chart shows another positive divergence between the stock chart and the Chaikin Oscillator. It also shows an example as to how the Chaikin Oscillator can be used in determining a entry point. When the indicator broke above its resistance and crossed the center line, the stock immediatley did the same thing.


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