Chaikin Oscillator is a technical indicator developed by Marc Chaikin to measure the momentum of the Accumulation Distribution Line using the formula for the MACD. Therefore, it is an indicator of an indicator. Chaikin Oscillator shows the difference between the 3-day EMA of the Accumulation Distribution Line and the 10-day EMA of Accumulation Distribution Line. Like any other momentum indicator, this indicator is designed to anticipate changes in direction, in this case the Accumulation Distribution Line, by measuring the momentum behind the moves. A change of momentum is the first step toward a market trend change. Therefore, this indicator can help to anticipate trend changes of the asset that is being analyzed.
The Chaikin Oscillator generates signals with the crosses above or below the zero level and with the divergences.