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Key Takeaways

Difficulty:Intermediate
Reliability:Moderate
Category:volume
Timeframes:1H, 4H, Daily

Chaikin Oscillator

volumešŸ“Š 1H, 4H, Daily

MACD applied to Accumulation/Distribution line, measuring momentum of money flow.

Formula

Code
Chaikin = EMA(A/D, 3) - EMA(A/D, 10)

Detailed Explanation

The Chaikin Oscillator applies MACD-style analysis to the Accumulation/Distribution line.

**Created by Marc Chaikin, it:** - Measures momentum of A/D line - Provides earlier signals than A/D alone - Combines volume and price effectively

Parameters

Fast Period
Default: 3
Fast EMA period
Slow Period
Default: 10
Slow EMA period

šŸ“ˆ Bullish Signals

Oscillator crosses above zero, bullish divergence

šŸ“‰ Bearish Signals

Oscillator crosses below zero, bearish divergence

Python Implementation

Chaikin Oscillator calculation

Python
import pandas_ta as ta
# Calculate A/D first
df['AD'] = ta.ad(df['high'], df['low'], df['close'], df['volume'])
# Then apply MACD-style calculation
df['Chaikin'] = ta.ema(df['AD'], 3) - ta.ema(df['AD'], 10)

TradingView Pine Script

Try on TradingView
JavaScript
//@version=5
indicator("Chaikin Oscillator")
co = ta.ema(ta.accdist, 3) - ta.ema(ta.accdist, 10)
plot(co, "Chaikin", color=color.blue)
hline(0, "Zero")
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MT5 MQL5 Code

C++
int chaikin_handle = iChaikin(_Symbol, _Period, 3, 10, MODE_EMA, VOLUME_TICK);
double chaikin[];
CopyBuffer(chaikin_handle, 0, 0, 100, chaikin);

Python Libraries

pandas-ta
Technical analysis
pip install pandas-ta

Common Mistakes

āœ—Using without reliable volume
āœ—Ignoring divergences

Confirmation Signals

A/D line
Price action
OBV

Best For

Money flow momentumDivergence tradingVolume confirmation

šŸ’” Pro Tips

  • ā€¢Essentially MACD of A/D line
  • ā€¢Divergences are particularly useful
  • ā€¢Requires reliable volume data
Last updated: December 29, 2024

Educational Disclaimer

This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.

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Frequently Asked Questions

Related Indicators

On-Balance Volume (OBV)

Cumulative indicator that adds volume on up days and subtracts on down days. Shows buying/selling pressure.

Money Flow Index (MFI)

Volume-weighted RSI that measures buying and selling pressure using price and volume.

Accumulation/Distribution Line

Cumulative indicator measuring money flow based on where price closes within its range.

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