Chaikin Oscillator is a technical analysis tool used to measure accumulation-​distribution of moving average convergence-divergence (MACD). ... The accumulation/ ...LinkedInwithBackgroundTechnicalAnalysisGuidetoTechnicalAnalysisTechnicalAnalysisBasicEducationAdvancedTechnicalAnalysisConceptsTechnicalAnalysisTechnicalAnalysisBasicEducationWhenbiginvestorsarebuyingastock,andaredoingsoaggressively,theirdemandshouldyield higherpricesinthefuture,makingthestockawiseinvestment.Insomerespects,thisisnothingmorethanMarkets101:examiningsupplyanddemand.Sincepriceisafunctionofdemand,itseemscounter-intuitivetotrack fluctuationsinoneelementwithoutpayingattentiontotheother.ThisiswheretheChaikinOscillatorcomesin,examiningbothclosingpriceandbuyingandsellingpressuretodeterminetheunderlyingdemandforastock.TheChaikinOscillatorwasinventedbyMarc Chaikin,a long-time stocktraderandanalystwho hascreateddozensof indicatorsduring hisdistinguishedcareer,withmanyofthemnow staplesofWallStreettechnicalanalysis.Hedevisedtheoscillatorindicatorasawaytomeasureaccumulationordistributionofasecuritybyinstitutionalinvestors,theoneswhomovemarkets.KeyTakeawaysTheChaikinOscillatorexaminesboththestrengthofpricemovesandunderlyingbuyingandsellingpressuretoprovideareadingofthedemandforasecurity,andpossibleturningpointsintheprice.DivergencebetweenpriceandtheChaikinOscillatoristheindicator’smostfrequentsignal,andoftenflagsashort-termreversalinprice.HowtheChaikinOscillatorWorksThe Chaikin Oscillatorisessentiallyamomentumindicator,butoftheAccumulation-Distributionlineratherthanmerelyprice.Itlooksatboththestrengthofpricemovesandtheunderlyingbuyingandsellingpressureduringagiventimeperiod.AChaikinOscillatorreadingabovezeroindicatesnetbuyingpressure,whileonebelowzeroregistersnetsellingpressure.Divergencebetweentheindicatorandpurepricemovesarethemostcommonsignalsfromtheindicator,andoftenflagmarketturningpoints.Chaikin OscillatorConstructionTheoscillatorbuildsontheconceptof movingaverageconvergencedivergence orMACD. MAC