This indicator uses closing price data and is an excellent and highly responsive trend indicator with very little lag. The Chaikin Trend Indicator is calculated as follows (using 14 bars as example):
CTI = 2 * (14 bar EMA) - (14 bar EMA of the 14 bar EMA)
bars: number of bars for the exponential averages 3-200
offset: optional, number of offset bars 0-100, defaults to 0
increment: optional, value from 1-20, defaults to 1. When set to 1 it calculates using daily bar values. A value of 5 can be used to calculate weekly bars (approximately due to holidays).
series: optional, see below
The ideal time frame on a weekly basis (increment=5) is 45 bars, which can then be utilized by comparing the current close to the Chaikin Trend Indicator Close(0)/ChaikinTrend(45,0,5) to rank stocks, with a higher ranking being preferable.
You can also use the rate of change of the Chaikin Trend using the offset parameter to determine the trend of price momentum. For example ChaikinTrend(45,0,5) / ChaikinTrend(45,21,5) for the rate of change in one month (21 bars) or ChaikinTrend(45,0,5) / ChaikinTrend(45,21,5) for the two months rate of change.
On a daily chart (increment=1) shorter term period values can be used to profit from moving average crossovers to buy stocks which are moving into uptrends. For example: Close(0)/ChaikinTrend(21,0,1)