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Technical Studies Reference

Chaikin Oscillator

This study calculates and displays a Chaikin Oscillator for the Price data.

Let the High, Low, and Closing Prices at Index \(t\) be denoted as \(H_t\), \(L_t\), and \(C_t\), respectively, and let the Volume at Index \(t\) be denoted as \(V_t\). Next we define the Accumulation Distribution, whose value at Index \(t\) is denoted as \(AD_t\). We calculate \(AD_t\) for \(t \geq 0\) as follows.

For \(t = 0\):

\(\displaystyle{AD_t = \frac{(C_0 - L_0) - (H_0 - C_0)}{H_0 - L_0 + 10 \cdot 10^{-10}}\cdot V_0}\)

For \(t > 0\):

\(\displaystyle{AD_t = \frac{(C_t - L_t) - (H_t - C_t)}{H_t - L_t + 10 \cdot 10^{-10}} \cdot V_t + AD_{t - 1}}\)

The \(10 \cdot 10^{-10}\) in the denominator is to safeguard against division by zero in the event that \(H_t = L_t\).

Let the Inputs Long MovAvg Length, Short MovAvg Length, and Divisor be denoted as \(n_L\), \(n_S\), and \(v\), respectively. Then we denote the Chaikin Oscillator for the given Inputs at Index \(t\) as \(CO_t(n_L,n_S,v)\), and we compute it for \(t \geq \max\{n_L,n_S\} - 1\) in terms of Exponential Moving Averages as follows.

\(\displaystyle{CO_t(n_L,n_S,v) = \frac{EMA_t(AD,n_S) - EMA_t(AD,n_L)}{v}}\)

This study also draws horizontal lines whose levels are determined by the Inputs Overbought and Oversold. If either of these Inputs is set to zero, then the corresponding horizontal line will not be drawn.



The spreadsheet below contains the formulas for this study in Spreadsheet format. Save this Spreadsheet to the Data Files Folder.

Open it through File >> Open Spreadsheet.


*Last modified Monday, 26th September, 2022.