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ChaikinOsc

ChaikinOsc in ProBuilder returns the Chaikin Oscillator, the difference between fast and slow EMAs of the Accumulation/Distribution line. Syntax, examples.

Syntax

probuilder
ChaikinOsc[shortPeriod, longPeriod](price)

Parameters

NameTypeDefaultDescription
shortPeriodinteger3Period of the fast exponential average applied to the Accumulation/Distribution line.
longPeriodinteger10Period of the slow exponential average applied to the same line.
priceprice sourceclosePrice series passed to the underlying calculation, such as close or open.

Formula

code
AD         = cumulative sum of Volume * ((Close - Low) - (High - Close)) / (High - Low)
ChaikinOsc = EMA[shortPeriod](AD) - EMA[longPeriod](AD)

The construction mirrors a MACD, but applied to the Accumulation/Distribution line instead of price. The oscillator therefore measures the momentum of money flow rather than the momentum of price.

How it works

The Accumulation/Distribution line accumulates volume according to where each bar closes within its range, producing a slow-moving picture of buying and selling pressure. The Chaikin Oscillator takes the derivative of that picture: by subtracting a slow EMA of the line from a fast one, it shows whether money flow is currently accelerating or decelerating.

A positive oscillator means the A/D line is rising faster than its recent norm, in other words, accumulation is picking up. A negative value means distribution is picking up. Crossings of the zero line mark the points where the short-term flow trend overtakes the longer-term one in either direction.

The indicator's best-known application is divergence analysis. When price prints a new low but the oscillator holds above its previous low, selling pressure is weakening beneath the surface, a bullish divergence. The bearish mirror image applies at new price highs. Direction changes of the oscillator itself, without a zero cross, are also watched as early hints that a flow trend is maturing.

Volume data is a hard requirement. Instruments without meaningful volume from the data feed produce a flat or unreliable oscillator.

Examples

Example 1, Standard Chaikin Oscillator plot (Indicator)

probuilder
// 3-period vs 10-period EMA of the A/D line, based on the open price
ChOsc = ChaikinOsc[3, 10](open)
RETURN ChOsc coloured(86,190,140)

The default 3 and 10 configuration. Plotted in a separate panel, zero-line crossings and divergences against price are the main features to read.

Example 2, Zero-line cross with trend filter (ProOrder)

probuilder
// Long when money-flow momentum turns positive in an uptrend
co = ChaikinOsc[3, 10](close)
trend = close > Average[100](close)

IF NOT LongOnMarket AND trend AND co CROSSES OVER 0 THEN
  BUY 1 CONTRACT AT MARKET
ENDIF

IF LongOnMarket AND co CROSSES UNDER 0 THEN
  SELL AT MARKET
ENDIF

Enters when accumulation momentum turns positive while price trades above its 100-bar average, and exits on the opposite cross. The trend filter suppresses the frequent zero crossings that occur in flat markets.

Example 3, Screening for positive flow momentum (ProScreener)

probuilder
// Instruments where money-flow momentum just turned positive
co = ChaikinOsc[3, 10](close)
turned = co > 0 AND co[1] <= 0
SCREENER[turned](co AS "Chaikin Osc")

Returns instruments whose Chaikin Oscillator crossed above zero on the current bar, a candidate list for volume-confirmed upturns.

Interpretation

ObservationReading
Oscillator above zeroShort-term money flow is stronger than the longer-term baseline, accumulation is accelerating.
Oscillator below zeroDistribution is accelerating.
Bullish divergence at price lowsNew price low without a new oscillator low, selling pressure fading.
Bearish divergence at price highsNew price high without a new oscillator high, buying pressure fading.

Zero crossings are frequent on short settings, so most workflows treat them as confirmation for signals generated elsewhere rather than as standalone entries.

Common errors and gotchas

  • Period order is short first. The signature is ChaikinOsc[shortPeriod, longPeriod]. Writing ChaikinOsc[10, 3] flips the sign of every reading and inverts all zero-cross logic without any compile error.
  • Volume-dependent. The oscillator is built on the Accumulation/Distribution line, which needs volume. On feeds without real traded volume, the output reflects tick counts or nothing at all.
  • Not a price oscillator. Despite the MACD-like shape, the input is the A/D line. Overbought and oversold levels borrowed from price oscillators do not transfer; the useful references are the zero line and the oscillator's own history.
  • Choppy around zero. With the default 3 and 10 periods, sideways markets produce rapid alternating crossings. A trend filter or a minimum-magnitude threshold removes most of the noise trades.
  • AccumDistr, the Accumulation/Distribution line the oscillator is built on.
  • OBV, cumulative volume line using whole-bar direction.
  • MoneyFlowIndex, bounded volume-weighted oscillator, 0 to 100.
  • MoneyFlow, bounded money-flow measure between -1 and 1.
  • ExponentialAverage, the smoothing method used on both legs.
  • ForceIndex, price change multiplied by volume.
  • PVT, price-volume trend line.
  • VolumeOscillator, the same fast-minus-slow construction applied to raw volume.