Chaikin Oscillator (CHO)

Predictions and analysis

Chaikin Oscillator (CHO)

The Chaikin Oscillator is, at its core, an indicator of an indicator. The Chaikin Oscillator takes Accumulation/Distribution (ADL) and applies two Exponential Moving Averages of varying length to the line. The Chaikin Oscillator's value is then derived by subtracting the longer term EMA of the ADL from the shorter term EMA of the ADL. Ultimately this serves as a way to measure the momentum of the ADL by plotting a line which fluctuates between positive and negative values. Being aware of changes in momentum can help a trader or technical analyst to anticipate trend changes since changes in momentum often precede changes in trend.

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