zeonta.chaikin_oscillator() — MACD’s fast-EMA-minus-slow-EMA shape applied to the A/D Line instead of price.
What it measures
The same fast-EMA-minus-slow-EMA shape macd applies to price, applied here to adl instead. ADL itself only tells you the cumulative level of buying versus selling pressure; taking the difference of two EMAs of it turns that into a rate-of-change reading — whether accumulation/distribution is currently speeding up or slowing down, the same relationship awesome_oscillator has to raw price.
Formula
ChaikinOsc = EMA(ADL, fast) - EMA(ADL, slow)
Parameters
Required inputs: high, low, close, volume
| Parameter | Default |
|---|---|
fast |
3 |
slow |
10 |
Returns
| Column |
|---|
ADOSC_3_10 |
Usage
Examples run against the 300-bar OHLCV fixture in tests/data/ohlcv.csv, loaded as df. The output shown is the real output.
import pandas as pd
import zeonta
df = pd.read_csv('tests/data/ohlcv.csv', parse_dates=['date']).set_index('date')
zeonta.chaikin_oscillator(df['high'], df['low'], df['close'], df['volume']).tail(3)
date
2024-10-25 -433147.921630
2024-10-26 -548733.439778
2024-10-27 -586042.606100
Name: ADOSC_3_10, dtype: float64
Accessor form: df.zta.chaikin_oscillator(...)
How to read it
Read it like any zero-centred momentum oscillator: crossing above zero signals ADL is accelerating upward (buying pressure building faster than its own recent average), crossing below signals the opposite. A divergence between the Chaikin Oscillator and price — price making a new high while the oscillator fails to — is read the same bearish-divergence way macd divergence is.
Pitfalls
Inherits every caveat adl has: a very narrow high-low range makes the underlying Money Flow Multiplier noisy, and the whole thing is built on a running total with no natural reset point. Because it is the difference of two EMAs, it also inherits macd’s own lag — both EMAs react to the same underlying series, so the oscillator reflects a change in ADL’s trend a few bars after it actually happens, not at the moment it happens.
Reference
Formula source: https://chartschool.stockcharts.com/table-of-contents/technical-indicators-and-overlays/technical-indicators/chaikin-oscillator