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@@ -13,9 +13,7 @@
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| **PineScript** | [adosc.pine](adosc.pine) |
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- The Chaikin Oscillator (ADOSC) is an indicator of an indicator.
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- Parameterized by `fastperiod` (default 3), `slowperiod` (default 10).
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- Output range: Unbounded.
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- Requires `slowPeriod` bars of warmup before first valid output (IsHot = true).
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- **Similar:** [CMF](../cmf/Cmf.md), [OBV](../vwad/Vwad.md) | **Complementary:** MACD for price confirmation | **Trading note:** Accumulation/Distribution Oscillator; MACD of A/D Line. Divergence with price = potential reversal.
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- Validated against TA-Lib, Skender, and Tulip reference implementations where available.
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The Chaikin Oscillator (ADOSC) is an indicator of an indicator. It applies the MACD formula to the Accumulation/Distribution Line (ADL) instead of the price.
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@@ -95,4 +93,4 @@ Validation is performed against **TA-Lib**, **Skender**, **Tulip**, and **Ooples
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* **Volatility**: ADOSC is extremely volatile. It whipsaws frequently. It should never be used in isolation.
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* **Trend Confirmation**: Use it to confirm a trend, not to predict it. If price is rising but ADOSC is falling (divergence), the rally is running on fumes.
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* **Zero Line**: Crosses above zero indicate that short-term accumulation is overpowering long-term accumulation (Bullish). Crosses below zero indicate the opposite (Bearish).
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* **Zero Line**: Crosses above zero indicate that short-term accumulation is overpowering long-term accumulation (Bullish). Crosses below zero indicate the opposite (Bearish).
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