Chaikin oscillator
The MACD formula applied to the accumulation/distribution line.
Volume and money flowBest on 3M, 6MAlso called CO
What it shows
The Chaikin oscillator subtracts a 10-bar EMA of the A/D line from a 3-bar EMA of the A/D line. It shows how fast the A/D line is changing.
It is positive when the A/D line is rising faster than its recent trend.
How we find it
The same code that draws it on your chart follows these steps, with the same result every time.
- Compute the A/D line.
- Fast = EMA(3) of A/D.
- Slow = EMA(10) of A/D.
- Oscillator = fast − slow.
Starting values: Fast 3; Slow 10. These are proposed and will be tuned on real price data before launch.
How to read it
- The panel shows the oscillator.
- Above zero: the A/D line is accelerating up.
- Below zero: down.
Status labels you may see
| Label | What it means |
|---|---|
| Positive | Oscillator above zero. |
| Negative | Oscillator below zero. |
| Near zero | Within 5% of its recent range. |
What cancels it
Nothing cancels it.
What traders check next
- Zero line crosses.
- Agreement with price.
- A/D line trend.
Limits
- Noisy.
- In volume units, so no cross-stock comparison.
- Lags.
Try it in forecastviz
- Open any ticker and choose Volume and money flow → Chaikin oscillator in the left menu.
- Switch between 3M, 6M to see how the picture changes.
- Compare with Accumulation/distribution line and Chaikin money flow on the same chart.
Questions
Why apply MACD to A/D?
To see when buying or selling pressure changes speed.
Is it popular?
Less than CMF.
Related trends
Further reading
- Murphy, Technical Analysis of the Financial Markets
- Granville, Granville's New Key to Stock Market Profits
- Pring, Technical Analysis Explained
- Achelis, Technical Analysis from A to Z
Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.