Klinger Volume Oscillator

The Klinger Volume Oscillator is a volume-based indicator used to assist in confirming price trend and detecting the change in stock price trend. 

Klinger Volume Oscillator

The Klinger Volume Oscillator is a volume-based indicator used to assist in confirming price trend and detecting the change in stock price trend.  Introduced in 1997 by Stephen I. Klinger, the indicator is designed to be both short-term sensitive and long-term accurate. This indicator is also referred to as Klinger Oscillator.


Klinger Volume Oscillator Calculation

The Klinger Volume Oscillator measures the sum of accumulation and distribution stock volumes according to the daily trend, then smoothes it by calculating the difference of its long moving average form its short one.

Klinger Volume Oscillator Interpretation

The Klinger Volume Oscillator is used by traders to confirm trend tendency and possible trend shifts. In the case of an up-trend, a buy signal is generated when the indicator crosses its trigger line (the 13-day exponential moving average) from below after a big drop below the zero level. 

In the case of a down-trend, a sell signal is generated when the Klinger Volume Oscillator crosses its trigger line from above after reaching unusual high levels above zero.  The Klinger Volume Oscillator can also generate signals when a divergence with the close price occurs as shown in the chart below.

Stock chart showing divergence with Klinger Volume Oscillator
 

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