Skip to main content
twynedocs.com

Back to all posts

How to Interpret Chaikin Oscillator Are Calculated?

Published on
10 min read
How to Interpret Chaikin Oscillator Are Calculated? image

Best Chaikin Oscillator Tools to Buy in December 2025

1 Oscillating Tool Blade Multitool Blades - TrivdPro 50pcs Multi Tool Blades Kits Oscillating Saw Blades for Metal Wood Plastic, Oscillator Blades for Multi Tool Fits Dewalt Milwaukee Ryobi Fein Bosch

Oscillating Tool Blade Multitool Blades - TrivdPro 50pcs Multi Tool Blades Kits Oscillating Saw Blades for Metal Wood Plastic, Oscillator Blades for Multi Tool Fits Dewalt Milwaukee Ryobi Fein Bosch

  • VERSATILE 50PCS SET: INCLUDES 4 TYPES OF BLADES FOR ALL TASKS.

  • DURABILITY GUARANTEED: HIGH CARBON STEEL AND TITANIUM FOR LASTING USE.

  • UNIVERSAL COMPATIBILITY: FITS OVER 98% OF OSCILLATING TOOL BRANDS.

BUY & SAVE
$36.99
Oscillating Tool Blade Multitool Blades - TrivdPro 50pcs Multi Tool Blades Kits Oscillating Saw Blades for Metal Wood Plastic, Oscillator Blades for Multi Tool Fits Dewalt Milwaukee Ryobi Fein Bosch
2 EZARC Titanium Oscillating Tool Blades, Oscillating Multitool Blades for Metal, Wood Nails, Screws Cutting, Plastic, 3 Pack

EZARC Titanium Oscillating Tool Blades, Oscillating Multitool Blades for Metal, Wood Nails, Screws Cutting, Plastic, 3 Pack

  • TWICE THE DURABILITY: TITANIUM-COATED BLADES LAST 2X LONGER THAN OTHERS.

  • SUPERIOR CUTTING EFFICIENCY: WAVY TOOTH DESIGN BOOSTS PERFORMANCE & REDUCES WEAR.

  • VERSATILE USE: IDEAL FOR WOOD, METAL, NAILS, PLASTIC, AND REMODELING TASKS.

BUY & SAVE
$13.97
EZARC Titanium Oscillating Tool Blades, Oscillating Multitool Blades for Metal, Wood Nails, Screws Cutting, Plastic, 3 Pack
3 CRAFTSMAN Oscillating Tool, 3-Amp, Includes Universal Tool-free Accessory System, Blades, Sandpaper and Tool Bag, Corded (CMEW401)

CRAFTSMAN Oscillating Tool, 3-Amp, Includes Universal Tool-free Accessory System, Blades, Sandpaper and Tool Bag, Corded (CMEW401)

  • 3 AMP MOTOR: POWER THROUGH VARIOUS APPLICATIONS WITH EASE.
  • VARIABLE SPEED DIAL: ACHIEVE PRECISE CONTROL FOR ANY TASK.
  • TOOL-FREE ATTACHMENT: EFFORTLESSLY CHANGE BLADES IN SECONDS.
BUY & SAVE
$69.99 $119.00
Save 41%
CRAFTSMAN Oscillating Tool, 3-Amp, Includes Universal Tool-free Accessory System, Blades, Sandpaper and Tool Bag, Corded (CMEW401)
4 Multitool Blades Multi-Tool Blades Kits - TrivdPro 100pcs Oscillating Tool Blade Oscillating Saw Blades for Metal Wood Plastic, Oscillator Blades for Multi Tool Fits Dewalt Milwaukee Ryobi Fein Bosch

Multitool Blades Multi-Tool Blades Kits - TrivdPro 100pcs Oscillating Tool Blade Oscillating Saw Blades for Metal Wood Plastic, Oscillator Blades for Multi Tool Fits Dewalt Milwaukee Ryobi Fein Bosch

  • VERSATILE 100-PIECE KIT: INCLUDES TITANIUM, CURVED, AND OSCILLATING BLADES.
  • DURABLE CONSTRUCTION: HIGH CARBON STEEL AND TITANIUM ENSURE LONG-LASTING USE.
  • UNIVERSAL COMPATIBILITY: FITS 98% OF OSCILLATING TOOLS ON THE MARKET TODAY.
BUY & SAVE
$49.99 $55.99
Save 11%
Multitool Blades Multi-Tool Blades Kits - TrivdPro 100pcs Oscillating Tool Blade Oscillating Saw Blades for Metal Wood Plastic, Oscillator Blades for Multi Tool Fits Dewalt Milwaukee Ryobi Fein Bosch
5 VEVOR Oscillating Tool Multitool, 4Amps Electric Oscillating Multi Tool Corded with 6 Variable Speeds 7000-19000 OPM, 3.2° Oscillating Angle, 13PCS Saw Accessories, LED Work Light & Tool Bag

VEVOR Oscillating Tool Multitool, 4Amps Electric Oscillating Multi Tool Corded with 6 Variable Speeds 7000-19000 OPM, 3.2° Oscillating Angle, 13PCS Saw Accessories, LED Work Light & Tool Bag

  • VERSATILE TOOL KIT: PERFECT FOR DIY, WOODWORKING, AND HOME IMPROVEMENT!

  • POWERFUL PERFORMANCE: 4.0 AMP MOTOR WITH 6 SPEEDS FOR DIVERSE TASKS!

  • EASY BLADE CHANGES: QUICK RELEASE LEVER AND ERGONOMIC GRIP FOR COMFORT!

BUY & SAVE
$40.94 $45.49
Save 10%
VEVOR Oscillating Tool Multitool, 4Amps Electric Oscillating Multi Tool Corded with 6 Variable Speeds 7000-19000 OPM, 3.2° Oscillating Angle, 13PCS Saw Accessories, LED Work Light & Tool Bag
6 ENERTWIST Oscillating Tool, 4.2 Amp Oscillating Multitool Kit with 5° Oscillation Angle, 6 Variable Speed, 31pcs Saw Accessories, Auxiliary Handle and Carrying Bag, ET-OM-500

ENERTWIST Oscillating Tool, 4.2 Amp Oscillating Multitool Kit with 5° Oscillation Angle, 6 Variable Speed, 31pcs Saw Accessories, Auxiliary Handle and Carrying Bag, ET-OM-500

  • POWERFUL MOTOR: 4.2 AMP COPPER MOTOR FOR VERSATILE CUTTING TASKS.

  • FAST CUTTING: 30-40% FASTER WITH 5° OSCILLATION ANGLE FOR PRECISION.

  • EASY ACCESSORY CHANGE: TOOL-LESS SYSTEM FITS ALL MAJOR BRANDS EFFORTLESSLY.

BUY & SAVE
$59.99
ENERTWIST Oscillating Tool, 4.2 Amp Oscillating Multitool Kit with 5° Oscillation Angle, 6 Variable Speed, 31pcs Saw Accessories, Auxiliary Handle and Carrying Bag, ET-OM-500
7 WORKPRO 25-piece Oscillating Multitool Accessories, Quick Release Oscillating Saw Blades to Cut Wood Metal Plastic, Fit Dewalt Worx Milwaukee Black&Decker Rockwell Makita Fein Craftsman

WORKPRO 25-piece Oscillating Multitool Accessories, Quick Release Oscillating Saw Blades to Cut Wood Metal Plastic, Fit Dewalt Worx Milwaukee Black&Decker Rockwell Makita Fein Craftsman

  • VERSATILE 25PC KIT: INCLUDES ESSENTIAL TOOLS FOR DIVERSE DIY PROJECTS.

  • DURABLE PREMIUM BLADES: CRAFTED FOR LONG-LASTING PERFORMANCE AND PRECISION.

  • UNIVERSAL FIT: COMPATIBLE WITH MAJOR BRANDS FOR EASY INTEGRATION.

BUY & SAVE
$25.99 $31.99
Save 19%
WORKPRO 25-piece Oscillating Multitool Accessories, Quick Release Oscillating Saw Blades to Cut Wood Metal Plastic, Fit Dewalt Worx Milwaukee Black&Decker Rockwell Makita Fein Craftsman
8 WEN Oscillating Multi-Tool Kit, 3.5A Variable Speed with Accessories and Carrying Case (MT3537)

WEN Oscillating Multi-Tool Kit, 3.5A Variable Speed with Accessories and Carrying Case (MT3537)

  • VERSATILE TOOL: CUT, SAND, AND SCRAPE WITH ONE POWERFUL DEVICE!

  • QUICK-RELEASE HEAD FOR EFFORTLESS BLADE SWAPS-WORK FASTER, SAVE TIME!

  • VARIABLE SPEED CONTROL FOR PRECISION IN EVERY TOUGH JOB-YOUR GO-TO TOOL!

BUY & SAVE
$44.99
WEN Oscillating Multi-Tool Kit, 3.5A Variable Speed with Accessories and Carrying Case (MT3537)
+
ONE MORE?

The Chaikin Oscillator is a technical analysis indicator that helps investors and traders interpret the volume flow of a stock or any financial instrument. It provides insights into the accumulation or distribution of a security, helping to identify potential price trends and reversals.

To calculate the Chaikin Oscillator, we first need to understand two components: the Accumulation Distribution Line (ADL) and the Moving Average Convergence Divergence (MACD).

  1. Accumulation Distribution Line (ADL): ADL is a cumulative indicator that measures the flow of funds into or out of a stock. This is based on the relationship between the closing price and the trading range for a given period. The formula for calculating ADL is as follows: ADL = Previous ADL + [(Close - Low) - (High - Close)] / (High - Low) * Volume Here, the ADL for the current period depends on the ADL of the previous period, the current trading range, and the volume.
  2. Moving Average Convergence Divergence (MACD): MACD is a trend-following momentum indicator that calculates the difference between two moving averages of price. The formula for calculating MACD is as follows: MACD Line = 12-day EMA - 26-day EMA Signal Line = 9-day EMA of MACD Line MACD Histogram = MACD Line - Signal Line The MACD Line represents the shorter-term moving average subtracted by the longer-term moving average. The Signal Line is an EMA (Exponential Moving Average) of the MACD Line. The Histogram indicates the difference between the MACD Line and Signal Line.

To calculate the Chaikin Oscillator, we subtract a 10-day EMA of the Accumulation Distribution Line (ADL) from a 3-day EMA of the ADL. This provides a smoothed oscillator that can be interpreted for potential buying or selling signals.

Chaikin Oscillator = 3-day EMA of ADL - 10-day EMA of ADL

Interpretation of the Chaikin Oscillator: The Chaikin Oscillator oscillates around a zero line. Positive values indicate buying pressure or accumulation, while negative values imply selling pressure or distribution.

  • If the Chaikin Oscillator crosses above the zero line, it suggests a potential bullish signal, indicating accumulation or buying pressure.
  • If the oscillator crosses below the zero line, it implies a potential bearish signal, indicating distribution or selling pressure.
  • Divergence between the price and the oscillator can also indicate a potential reversal in the direction of the price.

Traders and investors use the Chaikin Oscillator in conjunction with other technical analysis tools to assist in their decision-making process, providing additional insights into the volume activity and potential trend reversals.

What are the key indicators for interpreting Chaikin Oscillator?

The key indicators for interpreting the Chaikin Oscillator are as follows:

  1. Positive and Negative Crossovers: When the Chaikin Oscillator crosses above the zero line, it indicates bullishness and suggests buying opportunities. Conversely, when it crosses below the zero line, it signifies bearishness and suggests selling opportunities.
  2. Divergence: If the price of the asset is moving in one direction, while the Chaikin Oscillator is moving in the opposite direction, it indicates a potential reversal in the price trend.
  3. Overbought and Oversold Levels: Extreme levels on the Chaikin Oscillator can signal overbought or oversold conditions. When the oscillator reaches high positive levels, it suggests that the price may be overbought and due for a correction. On the other hand, when it reaches low negative levels, it indicates oversold conditions and suggests a potential price rebound.
  4. Volume Confirmation: The Chaikin Oscillator takes into account the accumulation/distribution line, which considers volume in its calculations. Therefore, if the Chaikin Oscillator shows a strong bullish or bearish signal, it is important to confirm it with supporting volume data. High volume during a trend confirms the strength of the move, while low volume may signal weakness.

It's important to note that the interpretation of the Chaikin Oscillator should always be combined with other technical analysis tools and indicators to confirm signals and avoid false readings.

How to combine Chaikin Oscillator with other technical indicators?

Combining the Chaikin Oscillator with other technical indicators can provide you with more confirmation and a stronger trading signal. Here are a few common ways to combine the Chaikin Oscillator with other indicators:

  1. Moving Averages: Combining the Chaikin Oscillator with moving averages can help you identify trends and filter out false signals. For example, you can use a longer-term moving average (such as the 50-day or 200-day) to determine the overall trend of the stock, and then use the Chaikin Oscillator to confirm buying or selling opportunities within that trend.
  2. Relative Strength Index (RSI): The RSI is a momentum oscillator that measures the speed and change of price movements. Combining the Chaikin Oscillator with the RSI can help you identify overbought and oversold conditions in the market. If both indicators are showing extreme readings (e.g., RSI above 70 and Chaikin Oscillator above +0.2), it could indicate a potential reversal or correction.
  3. Volume Indicators: Since the Chaikin Oscillator is based on volume, combining it with other volume indicators can provide additional confirmation. For example, you can use the On-Balance Volume (OBV) or the Money Flow Index (MFI) to confirm the strength of the buying or selling pressure indicated by the Chaikin Oscillator.
  4. Support and Resistance Levels: Combining the Chaikin Oscillator with support and resistance levels can help you identify potential breakout or reversal points. If the Chaikin Oscillator shows bullish or bearish divergence near a strong support or resistance level, it could indicate a high-probability trading opportunity.

Remember, it's important to consider the strengths and weaknesses of each indicator and not rely solely on one. Combining multiple indicators can provide a more comprehensive analysis of the market and increase the reliability of your trading signals.

The Chaikin Oscillator is a technical analysis tool that measures the accumulation and distribution of a stock by comparing the MACD and On-Balance Volume indicators. It can be used to identify price trends by analyzing the values of the oscillator.

Here are the steps to use the Chaikin Oscillator for identifying price trends:

  1. Calculate the Chaikin Line: Start by calculating the Chaikin Line, which is the difference between the Accumulation Distribution Line (ADL) and a 10-day exponential moving average (EMA) of the ADL. The ADL measures the volume and price action to determine accumulation and distribution.
  2. Plot the Chaikin Oscillator: Plot the Chaikin Line values on a chart to create the Chaikin Oscillator. The oscillator swings above and below a zero line, indicating buying and selling pressure.
  3. Analyze the Oscillator: Identify patterns and trends in the oscillator. A positive value above the zero line indicates buying pressure and suggests a bullish trend. On the other hand, a negative value below the zero line indicates selling pressure and suggests a bearish trend.
  4. Look for Divergences: Pay attention to divergences between the oscillator and the price action. If the price is making higher highs, but the oscillator is making lower highs, it could indicate a potential reversal or weakness in the uptrend. Similarly, if the price is making lower lows, but the oscillator is making higher lows, it could indicate a potential reversal or strength in the downtrend.
  5. Use Moving Averages: Apply moving averages to the Chaikin Oscillator to spot trends more easily. For example, a 9-day EMA of the oscillator can be used as a signal line. When the oscillator crosses above the signal line, it suggests a bullish trend, while a crossover below the signal line suggests a bearish trend.
  6. Confirm with Other Indicators: Use the Chaikin Oscillator together with other technical indicators to confirm price trends. For example, you can use trendlines, support and resistance levels, or other oscillators like the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD) to strengthen your analysis.

Remember that no single indicator can guarantee accurate predictions, so it is essential to use the Chaikin Oscillator in conjunction with other technical analysis tools and apply strict risk management techniques when making trading decisions.

What is the formula used for calculating Chaikin Oscillator?

The formula used for calculating the Chaikin Oscillator is as follows:

Chaikin Oscillator = (3-day EMA of Accumulation/Distribution Line) - (10-day EMA of Accumulation/Distribution Line)

The Accumulation/Distribution Line is calculated using the following formula:

Accumulation/Distribution Line = [(Close - Low) - (High - Close)] / (High - Low) * Volume

Where:

  • Close: the closing price of the current period
  • Low: the lowest price of the current period
  • High: the highest price of the current period
  • Volume: the trading volume of the current period
  • EMA: Exponential Moving Average

The Chaikin Oscillator is used to measure the momentum of the Accumulation/Distribution Line. It helps traders identify the strength of buying or selling pressure in the market.

How to interpret Chaikin Oscillator?

The Chaikin Oscillator is a technical analysis tool used to determine potential changes in a stock's volume flow and identify buying and selling opportunities. Here's how to interpret it:

  1. Understanding the calculation: The Chaikin Oscillator is calculated by subtracting the 10-day exponential moving average (EMA) of the Accumulation/Distribution Line (ADL) from the 3-day EMA of the ADL. The ADL represents the cumulative sum of money flow volume over a specified period, indicating the buying or selling pressure in the market.
  2. Identifying bullish signals: When the Chaikin Oscillator line crosses above the zero line, it indicates a bullish sign. This suggests that the buying pressure is increasing, and the stock may experience upward momentum.
  3. Identifying bearish signals: When the Chaikin Oscillator line crosses below the zero line, it indicates a bearish sign. This suggests that the selling pressure is increasing, and the stock may experience downward momentum.
  4. Analyzing divergences: Divergences occur when the price of the stock and the Chaikin Oscillator don't move in the same direction. Bullish divergence happens when the stock price is making lower lows, but the Chaikin Oscillator is making higher lows, indicating a potential reversal to the upside. Conversely, bearish divergence occurs when the stock price is making higher highs, but the Chaikin Oscillator is making lower highs, indicating a potential reversal to the downside.
  5. Confirming trends: The Chaikin Oscillator can be used to confirm trends by comparing the oscillator's direction with the price movement. If the stock is in an uptrend and the Chaikin Oscillator is also moving upward, it confirms the strength of the upward momentum. Similarly, if the stock is in a downtrend and the Chaikin Oscillator is also moving downward, it confirms the strength of the downward momentum.
  6. Analyzing overbought and oversold conditions: Extreme values in the Chaikin Oscillator can indicate overbought or oversold conditions. When the oscillator reaches high positive values, it indicates that the stock may be overbought and due for a potential pullback. Conversely, when the oscillator reaches low negative values, it suggests that the stock may be oversold and due for a potential bounce back.

It is important to remember that the Chaikin Oscillator is a single tool and should be used in conjunction with other technical indicators and analysis methods to make informed trading decisions.