Description
Accumulation Distribution Oscillator also referred to as Chaikin Oscillator is used to observe changes in the Accumulation Distribution Line therefore it serves as a Accumulation Distribution Line Momentum Indicator. It is calculated by subtracting the 10-day EMA of the Accumulation Distribution Line from 3-day EMA of the Accumulation Distribution Line.
Formula
LineArray[] = shortEMA(ADline) - longEMA(ADline)
Interpretation
The Accumulation Distribution Oscillator is helpful in generating trend change signals when it crosses the zero line. Crossing into positive indicates bullish bias and crossing the zero line into negative may signal strong selling pressure.
inteliCharts allows you to change input parameters for both short-period EMA and log-period EMA. The chart below reflects oscillator smoothing effect when both periods are increased and the ratio shortEMA/longEMA is maintained.
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