An indicator that stems from the concept behind the Accumulation/Distribution Line is the Chaikin Oscillator – or Chaikin A/D Oscillator, as it is sometimes called – named after its creator, Marc Chaikin. The Chaikin Oscillator indicator is the difference between a 3-day exponential moving average, and a 10-day exponential moving average applied to the Accumulation Distribution.
The most important signal arises when the prices reach a maximum or a minimum level (especially on the level of outbidding/resale), but the Chaikin's oscillator can't overcome its previous extremum and so it turns around. Signals moving in the direction of the medium-term trend are more reliable than those moving against it. The fact that an oscillator confirms a new maximum or minimum doesn't mean that the prices will move on in that direction.
Chaikin Oscillator can be also used differently when change of its direction serves as a buy or sell notice but only if it corresponds to the direction of the price tendency.