The Chaikin Oscillator is a technical analysis indicator that measures the momentum of the Accumulation/Distribution Line by calculating the difference between the 3-day and 10-day exponential moving averages of that line. It is used to identify potential trend changes and confirm the strength of price movements based on volume flow. When the oscillator crosses above zero, it suggests accumulation and buying pressure, while a cross below zero indicates distribution and selling pressure.
Example
“The Chaikin Oscillator crossed above zero just as price broke resistance, confirming strong accumulation behind the rally.”