Chaikin Oscillator Indicator: what does it show?

The Chaikin Oscillator (CO) is a technical analysis tool developed by Marc Chaikin to assess trend strength based on volumes. It is calculated as the difference between two exponential moving averages of the Accumulation/Distribution Line (A/D) with different periods. The primary goal of the indicator is to help traders identify potential reversal points and the strength of the market trend. If CO is positive, it may indicate an uptrend, and if negative, a downtrend.