OPEN-SOURCE SCRIPT
Chaikin Oscillator with StdDev Markers
Just a Chaikin Oscillator slightly tuned to show extreme changes in A/D momentum.
- Red histogram means the fast EMA is way above the slow EMA (strong distribution).
- Green histogram means the fast EMA is way below the slow EMA (strong accumulation).
Divergences are also easy to identify. When the price pushes more than the histogram, hidden selling could be taking place near tops, and when the price drops but the histogram doesn't follow, accumulation could be taking place.
This, coupled with VSA analysis, is all you'll ever need to understand price action.
- Red histogram means the fast EMA is way above the slow EMA (strong distribution).
- Green histogram means the fast EMA is way below the slow EMA (strong accumulation).
Divergences are also easy to identify. When the price pushes more than the histogram, hidden selling could be taking place near tops, and when the price drops but the histogram doesn't follow, accumulation could be taking place.
This, coupled with VSA analysis, is all you'll ever need to understand price action.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publications is governed by House rules. You can favorite it to use it on a chart.
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