The Chaikin Oscillator: A Momentum Indicator for Technical Analysis
The Chaikin Oscillator is a popular technical indicator developed by Gregory L. Chaikin. It is used to identify overbought and oversold conditions in financial markets, helping traders make more informed decisions.
The oscillator oscillates between -100 and +100, with higher values indicating stronger momentum and lower values indicating weaker momentum. The Chaikin Oscillator is a versatile indicator that can be used on various time frames, from short-term to long-term analysis.
How to Use the Chaikin Oscillator
- When the oscillator is above 0, it indicates a bullish trend. A higher value indicates stronger buying pressure.
- When the oscillator is below -100, it indicates a bearish trend. A lower value indicates stronger selling pressure.
- The Chaikin Oscillator is especially useful when combined with other indicators, such as moving averages or RSI.