Klinger Oscillator

What Is a Klinger Oscillator?

The Klinger oscillator is a technical indicator developed by Stephen Klinger in 1977.

It is used to forecast long-term money flow trends and identify short-term variations in financial markets.

The oscillator combines volume and price data to predict price reversals and thoroughly analyze the relationship between volume and price.

Klinger Oscillator Trading Strategy

The Klinger oscillator consists of the blue KVO line and the green EMA average line.

The standard signal line is a 13-period moving average used to determine buy and sell signals.

The indicator focuses on volume moving through an asset and its impact on short-term and long-term price levels.

Traders typically watch for crossovers between the KVO line and the signal line, indicating potential shifts in price.

Why Is the Klinger Oscillator Used?

The Klinger oscillator is used to identify buying and selling signals based on the KVO and signal lines’ crossover.

When the KVO line crosses and rises above the signal line, traders interpret it as bullish.

Conversely, when the KVO line falls below the signal line, it is seen as a bearish signal.

What Is the Best Setting for the Klinger Oscillator?

The Klinger oscillator does not have specific values associated with its lines.

Traders can choose the indicator’s time frame and set it according to their preferred trading period.

Klinger Oscillator Formula

The formula for the Klinger oscillator is relatively complex, but traders do not necessarily need to understand it in detail. The key is to grasp its practical application.

The oscillator is generated by subtracting the 34-period exponential moving average (EMA) of the volume force from the 55-period EMA of the volume force.

The volume force is derived from various price and volume calculations.

Traders using the Klinger oscillator can enter counter positions immediately after closing their initial positions.

This means they are always in the market, as open and close signals are identical.