TM - Volume Oscillator
volume is very essential in trading because it helps show the seriousness of the movement of a financial asset. For example, a sharp increase in the price of a currency that is not supported by large-volume can turn out to be a false breakout.
The Klinger Oscillator ( KO ) developed to be both short-term sensitive and long-term accuracy.
The Klinger Oscillator ( KO ) was developed by Stephen J. Klinger. Learning
from prior research on volume by such well-known technicians as Joseph Granville,
Larry Williams, and Marc Chaikin, Mr. Klinger set out to develop a volume-based
indicator to help in both short- and long-term analysis.
The KO was developed with two seemingly opposite goals in mind: to be sensitive
enough to signal short-term tops and bottoms, yet accurate enough to reflect the
the long-term flow of money into and out of a security.
The KO is based on the following tenets:
Price range (i.e. High - Low) is a measure of movement and volume is the force behind the movement.
The sum of High + Low + Close defines a trend.
Accumulation occurs when today's sum is greater than the previous day's. Conversely, distribution occurs when today's sum is less than the previous day's. When the sums are equal, the existing trend is maintained.
Volume produces continuous intra-day changes in price reflecting buying and selling pressure.
The KO quantifies the difference between the number of shares being accumulated and distributed each day as "volume force". A strong, rising volume force should accompany an uptrend and then gradually contract overtime during the latter stages of the uptrend and the early stages of the following downtrend.
This should be followed by a rising volume force reflecting some accumulation before a bottom develops.
Klinger Oscillator can be used with other indicators as a confirmation tool.
Simple ways to trade using the oscillator:
BUY - Klinger Oscillator crosses above the ZERO Line or If the HISTOGRAM is BLUE
SELL - Klinger Oscillator crosses below the ZERO Line or If the HISTOGRAM is RED
or
Buy/Sell when the Klinger Oscillator and Trigger Line ( Blackline ) crosses which are indicated by colored circles.
Black Dot - Buy
Fuchsia Dot - Sell
The indicator also includes some additional features:
-Alerts
-Divergence Plotter
-Oscillator smoothing
The Klinger Oscillator ( KO ) developed to be both short-term sensitive and long-term accuracy.
The Klinger Oscillator ( KO ) was developed by Stephen J. Klinger. Learning
from prior research on volume by such well-known technicians as Joseph Granville,
Larry Williams, and Marc Chaikin, Mr. Klinger set out to develop a volume-based
indicator to help in both short- and long-term analysis.
The KO was developed with two seemingly opposite goals in mind: to be sensitive
enough to signal short-term tops and bottoms, yet accurate enough to reflect the
the long-term flow of money into and out of a security.
The KO is based on the following tenets:
Price range (i.e. High - Low) is a measure of movement and volume is the force behind the movement.
The sum of High + Low + Close defines a trend.
Accumulation occurs when today's sum is greater than the previous day's. Conversely, distribution occurs when today's sum is less than the previous day's. When the sums are equal, the existing trend is maintained.
Volume produces continuous intra-day changes in price reflecting buying and selling pressure.
The KO quantifies the difference between the number of shares being accumulated and distributed each day as "volume force". A strong, rising volume force should accompany an uptrend and then gradually contract overtime during the latter stages of the uptrend and the early stages of the following downtrend.
This should be followed by a rising volume force reflecting some accumulation before a bottom develops.
Klinger Oscillator can be used with other indicators as a confirmation tool.
Simple ways to trade using the oscillator:
BUY - Klinger Oscillator crosses above the ZERO Line or If the HISTOGRAM is BLUE
SELL - Klinger Oscillator crosses below the ZERO Line or If the HISTOGRAM is RED
or
Buy/Sell when the Klinger Oscillator and Trigger Line ( Blackline ) crosses which are indicated by colored circles.
Black Dot - Buy
Fuchsia Dot - Sell
The indicator also includes some additional features:
-Alerts
-Divergence Plotter
-Oscillator smoothing
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