Chaikin Oscillator

Chaikin Oscillator

In technical analysis, a measure of market movements created by subtracting a 10-day exponential moving average (EMA) from a 3-day exponential moving average of the accumulation/distribution line, which is a measure of whether investors are generally buying or selling. Exponential moving averages are weighted to emphasize more recent market movements; the Chaikin oscillator does this while also accounting for older trends, such as the 10-day EMA.
References in periodicals archive ?
This can be measured using the Chaikin Oscillator. A reading above zero indicates buying pressure while a reading below zero indicates selling pressure.
The model was created by Marc Chaikin, a recognized expert in developing computerized stock selection models for professional money managers and individual investors, best known for two widely used indicators, the Chaikin Oscillator and Chaikin Persistency of Money Flow.
His research into supply and demand for stocks led to the creation of the widely used Chaikin Oscillator and Chaikin Persistency of Money Flow, the basis of Investor Business Daily's Accumulation/Distribution Rating.
A variation that is a little ‘softer' with less sharp points in the graph is known as the Chaikin Oscillator. The only difference is that we only add volume when the price is up over the midday point, rather than the end of day, and take away volume in the same manner if below the midday point.