The standard

Chaikin Oscillator
is a stock market

technical indicator used to
make stock buying and selling decisions.

The oscillator is created by

- creating a time-series of the closing prices of the stock,
- calculate the Accumulation/Distribution Line
of the time-series generated in step 1.
- subtract a 10-period exponential moving average
of the Accumulation/Distribution Line time-series calculated in step 2
from a 3-period
exponential moving average
of the same
Accumulation/Distribution Line calculated in step 2.

The formula equivalent of the calculation is shown below:

```
L = accumulation_distribution(close)
```

Then, subtract the two exponential moving average time-series.

```
C = EMA(L, 3) - EMA(L, 10)
```

A basic trading rule is to buy when the oscillator
drops below zero, and to sell when the oscillator goes
above zero.

*Technical Indicators*