The Chaikin Oscillator, or Chaikin A/D Oscillator, stems from the concept behind the Accumulation/Distribution Line. The basic premise of the Chaikin Oscillator (and the A/D Line) is that the degree of buying or selling pressure can be calculated by the location of a close relative to the high and low for the corresponding period. There is a buying pressure when a stock closes … [Read more...]
Chaikin Oscillator : The Basic Concept
The Chaikin Oscillator was originally developed to compare volume and price levels for an asset. It was developed by Marc chaikin. The Chaikin Oscillator is usually used to indicate when an asset is overbought or oversold and thus, to indicate upcoming reversals. A trader first needs to generate an Accumulation/Distribution Line (A/D Line) for an asset in order to calculate … [Read more...]