ChaikinOscReturn the Chaikin oscillator technical indicator value.
Syntax:
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ChaikinOsc[Ch1,Ch2](price) |
Calculation :
The Chaikin Oscillator is created by substracting an x period exponential moving average of the Accumulation Distribution Line from a y period exponential moving average of the Accumulation Distribution Line.
(Default values are : x = 10 ; y = 3).
Interpretation :
This indicator emphasis the end of a trend when prices reach a high of a new low while the Chaikin oscillator does not reach a new extreme and change direction (= divergence with price).
The divergence between the indicator and the price quote identify major reversal points and give strong buy/sell signals.
A bullish divergence occurs when the stock price makes new lows while the indicator fails to make new lows.
A bearish divergence occurs when the stock price makes new highs while the indicator falls to make new highs.
Example:
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ChOsc = ChaikinOsc[3, 10](open) RETURN ChOsc coloured(86,190,140) |
