Chaikin Oscillator

 CHAIKIN OSCILLATOR The Chaikin Oscillator or Volume Accumulation Oscillator consists of the difference between two exponential moving averages (usually 3 and 10day) of the Accumulation Distribution Line indicator and is used to confirm price movement or divergences in price movement. The Chaikin Oscillator is more accurate than the On Balance Volume indicator On Balance Volume: adds all volume for the day if the close is positive, even if the stock closed only a penny higher or subtracts all volume for the day if the stock closes lower. Chaikin Oscillator: factors in the closing price in relation to the highs, lows, and average price and determines the appropriate ratio of volume to be attributed to the day. The main purpose of the Chaikin Oscillator is to confirm price trends and warn of impending price reversals. The chart given below illustrates these confirmation signals and divergence signals:

The Chaikin Oscillator is a helpful volume based technical indicator that helps confirm the current price action or foreshadow future price reversals.

Chaikin Oscillator  PRICE OSCILLATOR The Price Oscillator uses two moving averages, one shorter-period and one longer-period, and then calculates the difference between the two moving averages. The Price Oscillator technical indicator can be used to determine overbought and oversold conditions as well as to confirm bullish or bearish price moves. The moving averages lengths are defined by the user. In the chart below of the E-mini Russel 2000 futures contract, the 9-day and 18-day moving averages are used:

PRICE OSCILLATOR OVERBOUGHT & OVERSOLD

The Price Oscillator can be used to detect when a trend is slowing down and potentially could reverse. This occurs when the Price Oscillator moves back towards the zero line. In contrast, when the Price Oscillator is moving away from the zero line, the price trend is accelerating. Moreover, the Price Oscillator can reveal areas of overbought and oversold, which is shown below in the chart of the E-mini Russel 2000 Futures contract:

 PRICE VOLUME TREND Price Volume Trend combines percentage price change and volume to confirm the strength of price trends or through divergences, warn of weak price moves. Unlike other price-volume indicators, the Price Volume Trend takes into consideration the percentage increase or decrease in price, rather than just simply adding or subtracting volume based on whether the current price is higher than the previous day's price. How the formula is calculated is presented below:

On an up day, the volume is multiplied by the percentage price increase between the current close and the previous time-period's close. This value is then added to the previous day's Price Volume Trend value. On a down day, the volume is multiplied by the percentage price decrease between the current close and the previous time-period's close. This value is then added to the previous day's Price Volume Trend value. The Price Volume Trend is helpful in seeing divergences; examples of these divergences are shown below in the chart of AT&T (T):

The Price Volume Trend indicator is usually interpreted as follows: Increasing price accompanied by an increasing Price Volume Trend value, confirms the price trend upward. Decreasing price accompanied by a decreasing Price Volume Trend value, confirms the price trend downward. Increasing price accompanied by a decreasing or neutral Price Volume Trend value is a divergence and is indicating that the price movement upward is weak and lacking conviction.

Decreasing price accompanied by a increasing or neutral Price Volume Trend value is a divergence and is indicating that the price movement downward is weak and lacking conviction. Price Volume Trend is a valuable technical analysis tool that combines both price and volume to confirm price action or warn of potential weakness or lack of conviction by buyers and sellers.