Chaikin Oscillator – Trading The Markets With Momentum [Free Download MT4]

Chaikin Indicator (or Chaikin Oscillator) is a technical indicator based on the difference in the moving averages of the Accumulation / Distribution indicator. Unlike many similar instruments, this oscillator does not redraw its readings. It fits well with modern trading systems, organically combining with other technical analysis tools.

You can download this indicator for free from the link below.

Indicator Settings

There are three parameters in the indicator settings: Slow Period, Fast Period, and Type Smooth, which are 10, 3, and 0 by default, respectively. The user can customize these values by adjusting the indicator to fit their trading strategy.

Indicator Calculations

The line of the Chaikin indicator is calculated by subtracting the 10-period exponential moving average of the A / D indicator from the 3-period exponential moving average of the same indicator.

CHO = EMA (A / D, 3) - EMA (A / D, 10)

Indicator signals

• Divergence

The Chaikin Oscillator gives the most important signal when prices reach new highs (lows), first of all, when the price of an asset is in the overbought/oversold zone, but the Chaikin indicator does not reach its previous highs or lows and then changes direction - observed divergence. The positive divergence between the price and the Chaikin oscillator in a growing market is a sell signal, and negative in a falling one is a buy signal.

• Definition of a trend

Another way of interpreting the signals of the Chaikin oscillator is to track the turns of the indicator line as signals to buy or sell, but only in the direction of the main trend line. For example, if you see that the Chaykin indicator, being in the zone of negative (positive) values, has turned up (down), then this can serve as a signal to buy or sell if the trend indicator shows the presence of an upward (downward) trend.

Conclusion

The main advantage of the Chaikin oscillator is its ability to give a leading forecast for changes in another Chaikin indicator - A/D, by the values of which it is calculated. This gives traders who use it an advantage over competitors, that is, the opportunity to buy closer to the "recession" and sell closer to the "peak" prices. The use of the Chaikin oscillator as part of trading systems can significantly increase their efficiency.

Download the Chaikin Oscillator for MT4 from the button below

Tip: Can’t open the downloaded archive file (ZIP or RAR)?

Try WinRAR for Windows or The Unarchiver for Mac .

Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.