What Does Chaikin Oscillator Mean?
An oscillator created by subtracting a 10-day exponential moving average EMA from a 3-day EMA of the accumulation/distribution line. Being an indicator of an indicator, it can give various sell or buy signals, depending on the context and other indicators.
The name accumulation/distribution comes from the idea that during accumulation buyers are in control and the price will be bid up through the day, or will make a recovery if sold down, in either case more often finishing near the day’s high than the low. The opposite applies during distribution.
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September 14th, 2011
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