Blog : CO - Chaikin Oscillator Indicator

CO - Chaikin Oscillator

CO (Chaikin Oscillator): The Chaikin Oscillator is an indicator of an indicator. It applies two Exponential Moving Averages (EMAs) of varying lengths to the Accumulation/Distribution Line (ADL). The value is derived by subtracting the longer-term EMA of the ADL from the shorter-term EMA of the ADL. This measures the momentum of the ADL, plotting a line that fluctuates between positive and negative values. Changes in momentum, indicated by the Chaikin Oscillator, can help traders anticipate trend changes, as momentum shifts often precede trend reversals.

Trend Following Mean Reversion
Fast Length 3 Fast Length 3
Slow Length 10 Slow Length 10
CO Long - Entry Trigger Long - Exit Trigger Short - Entry Trigger Short - Exit Trigger
Trend Following CO crossover 0 CO crossunder 0 CO crossunder 0 CO crossover 0
Mean Reversion CO crossunder 0 CO crossover 0 CO crossover 0 CO crossunder 0
CO Long - Entry Confluence Long - Exit Confluence Short - Entry Confluence Short - Exit Confluence
Trend Following CO > 0 CO < 0 CO < 0 CO > 0
Mean Reversion CO < 0 CO > 0 CO > 0 CO < 0