Chaikin A/D Oscillator (3, 10)
The Chaikin A/D Oscillator (3, 10) is a volume indicators indicator used in Skyrexio Strategy Builder for volume confirmation and institutional activity detection.
Introduction
The Chaikin A/D Oscillator is a momentum-based money flow indicator that provides LONG and SHORT opportunities through dynamic accumulation and distribution analysis. This oscillator transforms the Accumulation/Distribution Line into a momentum indicator by calculating the difference between fast and slow exponential moving averages, making it more responsive to short-term money flow changes.
How Chaikin A/D Oscillator Works
The Chaikin A/D Oscillator was developed by Marc Chaikin as a momentum indicator derived from the Accumulation/Distribution Line. It calculates the difference between 3-period and 10-period EMAs of the A/D Line, creating an oscillator that fluctuates around zero.
β’ Momentum transformation - Converts A/D Line into responsive momentum oscillator β’ Zero-line oscillation - Positive values indicate buying pressure, negative indicate selling β’ Early signals - More responsive than A/D Line for timing entries/exits β’ Divergence detection - Excellent for spotting momentum shifts before price β’ Volume confirmation - Maintains volume-weighted accuracy of original A/D Line
Key Characteristics
Category
Volume Indicators
Type
Momentum & Money Flow Oscillator
Primary Use
LONG/SHORT momentum timing and money flow analysis
Timeframe
All timeframes supported (1m to 1M)
Confirmation
Zero-line crossovers, divergences, volume spikes
Strategy Applications
π’ LONG STRATEGY (Primary Use)
Chaikin A/D Oscillator is excellent for LONG strategies when it shows positive momentum and accelerating accumulation through zero-line crossovers and rising values.
Base Entry Order (LONG)
Trigger Type: Once per bar close
Bar TF: 1H
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Cross Above
Second Condition: Value
Value: 0
AND
First Condition: Close Price
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (50)
Timeframe: 1H
Additional Entry Orders (LONG)
Additional Entry 1: Momentum acceleration confirmation
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (5)
Timeframe: 1H
AND
First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H
OR
Additional Entry 2: Bullish divergence confirmation
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 0
AND
First Condition: RSI
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 45
Take Profit Orders (LONG)
Rule 1: Exit condition - Momentum exhaustion detected
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Cross Below
Second Condition: Value
Value: 0
OR
Rule 2: Exit condition - Distribution momentum building
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (5)
Timeframe: 1H
AND
First Condition: RSI
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 70
OR
Rule 3: Exit condition - Bearish divergence warning
First Condition: Close Price
Timeframe: 1H
Operator: Greater Than
Second Condition: High Price
Timeframe: 1H
AND
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (10)
Timeframe: 1H
Stop Loss Orders (LONG)
Rule 1: Stop loss - Momentum reversal confirmed
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Cross Below
Second Condition: Simple Moving Average (5)
Timeframe: 1H
AND
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 0
OR
Rule 2: Stop loss - Strong distribution detected
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: -0.1
AND
First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H
OR
Rule 3: Stop loss - Price breakdown with momentum
First Condition: Close Price
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (50)
Timeframe: 1H
AND
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 0
π΄ SHORT STRATEGY (Primary Use)
Chaikin A/D Oscillator is equally effective for SHORT strategies when it shows negative momentum and accelerating distribution through zero-line crossovers and falling values.
Base Entry Order (SHORT)
Trigger Type: Once per bar close
Bar TF: 1H
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Cross Below
Second Condition: Value
Value: 0
AND
First Condition: Close Price
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (50)
Timeframe: 1H
Additional Entry Orders (SHORT)
Additional Entry 1: Momentum acceleration confirmation
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (5)
Timeframe: 1H
AND
First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H
OR
Additional Entry 2: Bearish divergence confirmation
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 0
AND
First Condition: RSI
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 55
Take Profit Orders (SHORT)
Rule 1: Exit condition - Momentum exhaustion detected
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Cross Above
Second Condition: Value
Value: 0
OR
Rule 2: Exit condition - Accumulation momentum building
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (5)
Timeframe: 1H
AND
First Condition: RSI
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 30
OR
Rule 3: Exit condition - Bullish divergence warning
First Condition: Close Price
Timeframe: 1H
Operator: Less Than
Second Condition: Low Price
Timeframe: 1H
AND
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (10)
Timeframe: 1H
Stop Loss Orders (SHORT)
Rule 1: Stop loss - Momentum reversal confirmed
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Cross Above
Second Condition: Simple Moving Average (5)
Timeframe: 1H
AND
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 0
OR
Rule 2: Stop loss - Strong accumulation detected
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 0.1
AND
First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H
OR
Rule 3: Stop loss - Price breakout with momentum
First Condition: Close Price
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (50)
Timeframe: 1H
AND
First Condition: Chaikin A/D Oscillator (3, 10)
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 0
Advanced Strategy Combinations
Multi-Timeframe Chaikin A/D Oscillator
Higher Timeframe Confirmation:
Daily: Chaikin A/D Oscillator trend direction and major levels
4H: Momentum patterns and zero-line relationships
1H: Execution signals and divergence detection
15M: Precise entry timing with momentum acceleration
Momentum Divergence Strategy
Zero-Line Bounce Strategy
Setup: Chaikin A/D Oscillator approaches zero from below Signal: Accumulation momentum building Entry: Oscillator bounces above zero with volume Target: Previous swing high or resistance level
Risk Management Guidelines
Position Sizing
Zero-Line Crossover
Standard
Clear momentum direction
Divergence Signals
Reduced (75%)
Counter-trend potential
High Volume Confirmation
Increased (125%)
Strong momentum confirmation
Momentum Acceleration
Increased (110%)
Clear directional bias
Chaikin A/D Oscillator Reliability Factors
β Clear zero-line crossovers with volume confirmation β Momentum acceleration in trend direction β Divergences confirmed by price action β Multiple timeframe alignment
Best Practices
For LONG Strategies
Zero-line confirmation - Enter when oscillator crosses above zero
Momentum acceleration - Look for rising oscillator values
Volume validation - Ensure volume supports momentum signals
Divergence opportunities - Use bullish divergences for early entries
For SHORT Strategies
Zero-line confirmation - Enter when oscillator crosses below zero
Momentum acceleration - Look for falling oscillator values
Volume validation - Ensure volume supports momentum signals
Divergence opportunities - Use bearish divergences for early entries
Common Mistakes to Avoid
Ignoring zero-line - The zero-line is crucial for determining momentum direction
Volume neglect - Chaikin A/D Oscillator requires volume confirmation
Overtrading - Avoid trading every oscillator movement, focus on significant signals
Timeframe mismatch - Ensure oscillator timeframe matches your trading strategy
Market Conditions Analysis
Uptrend
π’ High (momentum confirmation)
π‘ Medium (distribution signals)
Downtrend
π‘ Medium (accumulation signals)
π’ High (momentum confirmation)
Ranging
π‘ Medium (oscillator swings)
π‘ Medium (oscillator swings)
High Volume
π’ High (clear momentum)
π’ High (clear momentum)
Low Volume
π΄ Low (unreliable signals)
π΄ Low (unreliable signals)
Related Indicators
Conclusion
Key Takeaways
PRIMARY USE: Momentum timing for money flow analysis
SECONDARY USE: Divergence detection for reversal opportunities
ALWAYS: Confirm oscillator signals with volume and price action
REMEMBER: Zero-line crossovers provide the strongest directional signals
Success with the Chaikin A/D Oscillator requires understanding that it transforms the A/D Line into a momentum indicator. Use zero-line crossovers for directional bias, momentum acceleration for timing, and divergences for reversal opportunities.
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