Indicator - Chaikin Oscillator
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Calculation Chaikin Oscillator
The Chaikin Oscillator is created by subtracting an x-period exponential moving average of the Accumulation Distribution Line from a y-period exponential moving average of the Accumulation Distribution Line.
(Default values : x=10 and y=3)
Interpretation Chaikin Oscillator
This indicator can emphasize the end of a trend when prices reach a new high or a new low while the Chaikin oscillator does not reach a new extreme and change direction (=> divergence with prices).
A divergence between the indicator and the price identifies reversal points and gives bullish/bearish signals.
A bullish divergence occurs when the price makes new lows while the indicator fails to make new lows.
A bearish divergence occurs when theprice makes new highs while the indicator fails to make new highs
