CSIMarket


Terms Beginning with C
       
       
 

Chaikin Oscillator CO

Technical Indicator


The Chaikin Oscillator (CO) is a technical indicator used to measure the momentum of a security's buying and selling pressure. It was developed by Marc Chaikin, a stock analyst and trader who worked on Wall Street for over 50 years. The CO is based on the Accumulation/Distribution Line (ADL), which is a volume-based indicator that measures the flow of money into and out of a security.

The CO is calculated by subtracting a 10-period exponential moving average (EMA) of the ADL from a 3-period EMA of the ADL. The resulting value is plotted as a histogram, with positive values indicating buying pressure and negative values indicating selling pressure. The CO can also be plotted as a line, which represents the difference between the 3-period and 10-period EMAs of the ADL.

Traders use the CO to identify trend reversals and confirm breakouts. If the CO crosses above the zero line, it is considered a bullish signal, indicating an increase in buying pressure. Conversely, if the CO crosses below the zero line, it is considered a bearish signal, indicating an increase in selling pressure. Traders also look for divergences between the price of a security and the CO, which can indicate a potential trend reversal.

Formula for the Chaikin Oscillator:

CO = EMA(ADL, 3) - EMA(ADL, 10)




   
     

Chaikin Oscillator CO

Technical Indicator


The Chaikin Oscillator (CO) is a technical indicator used to measure the momentum of a security's buying and selling pressure. It was developed by Marc Chaikin, a stock analyst and trader who worked on Wall Street for over 50 years. The CO is based on the Accumulation/Distribution Line (ADL), which is a volume-based indicator that measures the flow of money into and out of a security.

The CO is calculated by subtracting a 10-period exponential moving average (EMA) of the ADL from a 3-period EMA of the ADL. The resulting value is plotted as a histogram, with positive values indicating buying pressure and negative values indicating selling pressure. The CO can also be plotted as a line, which represents the difference between the 3-period and 10-period EMAs of the ADL.

Traders use the CO to identify trend reversals and confirm breakouts. If the CO crosses above the zero line, it is considered a bullish signal, indicating an increase in buying pressure. Conversely, if the CO crosses below the zero line, it is considered a bearish signal, indicating an increase in selling pressure. Traders also look for divergences between the price of a security and the CO, which can indicate a potential trend reversal.

Formula for the Chaikin Oscillator:

CO = EMA(ADL, 3) - EMA(ADL, 10)




Related Technical Indicators


Help

About us

Advertise