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Trading and Investment Terminology

Chaikin Oscillator

The Chaikin oscillator is named for its creator Marc Chaikin.


The basic premise of the Accumulation/Distribution Line is that the degree of buying or selling pressure can be determined by the location of the close, relative to the high and low for the corresponding period. 


There is buying pressure when a stock closes in the upper half of a period's range and there is selling pressure when a stock closes in the lower half of the period's trading range.


How to Calculate the Chaikin Oscillator?

Calculate the accumulation-distribution line (ADL) in three steps. The fourth step yields the Chaikin Oscillator.


  1. Calculate the Money Flow Multiplier (N).
  2. Multiply the Money Flow Multiplier (N) by volume to calculate Money Flow Volume (N).
  3. List a running total of N to draw the accumulation-distribution line (ADL).
  4. Compute the difference between 10 period and 3-period exponential moving averages to calculate the Chaikin oscillator.