Chaikin Oscillator
Volume & money flow
The MACD principle applied to the A/D line: the difference between a fast and a slow EMA of the money-flow line. That turns a cumulative line into a usable oscillator.
In its original form this indicator uses volume and/or the daily range (High/Low). The scanner only has closing prices and approximates those inputs (see the note at the bottom). So treat the absolute values as indicative; the direction and the crossings remain usable.
Construction & calculation
- First compute the A/D line.
- Take its EMA(3) and EMA(10).
- Chaikin Oscillator = EMA(3) - EMA(10).
Chaikin Osc = EMA(A/D, 3) - EMA(A/D, 10)
Interpretation
- Above zero: the money flow accelerates positively — inflow is increasing.
- Below zero: outflow accelerates.
- The zero-line crossing is the classic signal, and it usually comes before the A/D line itself changes direction.
- Chaikin advised taking the signal only in the direction of the existing trend (e.g. only buy signals as long as the price is above the MA90).
How the signal works in this scanner
Buy signal (green)The oscillator crosses the zero line from below to above.
Sell signal (red)The oscillator crosses the zero line from above to below.
Watch-outs & pitfalls
- As a derivative of a derivative, this indicator is sensitive to noise. Use it as confirmation, not as a trigger on its own.