Public Overloads Shared Function ChaikinOscillator( _
   ByVal s As Series, _
   ByVal smoothingFactor As Double _
) As Series

Visual Basic (Usage)	Copy Code
Dim s As Series Dim smoothingFactor As Double Dim value As Series   value = FinancialEngine.ChaikinOscillator(s, smoothingFactor)

public static Series ChaikinOscillator( 
   Series s,
   double smoothingFactor
)

Parameters

s

A financial series.

smoothingFactor

The number between 0 and 1. The lower the number the more sensitive the indicator is.

Return Value

Interpretation

A sell signal is when price action develops a higher high into overbought zones and the Chaikin Oscillator diverges with a lower high and begins to fall. Conversely, a buy signal is generated when price action develops a lower low into oversold zones and the oscillator diverges with a higher low and begins to rise. The Chaikin Oscillator can also be used to time entry to existing trends by either buying the dip (when the oscillator turns down) or selling the rally (when the oscillator turns up).

Evaluation

The Chaiken Oscillator for a given period is given by:

EMA_3(Accumulate/Distribution) - EMA_10(Accumulate/Distribution),

where EMA_3 and EMA_10 is the exponential moving average over 3 and 10 days respectively; and Accumulate/Distribution is the corresponding indicator over those 3 or 10 days respectively.

Illustration

If we are provided within the high, low and volume over the last 15 periods, then we will be able to evaluate the Chaikin Oscillator on the previous 5 trading days. Since the evaluation of the oscillator on a given period requires knowledge of the 10 previous periods data.

Reference