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10.20 Klinger Volume Oscillator

The Klinger volume oscillator (KVO) by Stephen J. Klinger is based on cumulative volume, with volume added or subtracted according to the direction of typical price and weighted by a certain daily range calculation.

A trend direction is determined from today and yesterday’s “typical prices” (which are (high+low+close)/3),

trend = /  1 if  TP[today] >  TP[yesterday]
        \ -1 if  TP[today] <= TP[yesterday]

A daily measurement DM = high-low is calculated and then a cumulative measurement formed (cumulative while the trend direction is the same),

CM[today] = / CM[yesterday] + DM[today]  if  trend[today]==trend[yester]
            \ DM[yesterday] + DM[today]  if  trend[today]!=trend[yester]

A “volume force” is then formed by accumulating volume amounts, with the “trend” factor making them add or subtract according to the typical price direction, and with the values scaled by DM and CM.

VF = volume * trend * abs(2*DM/CM - 1)

The Klinger oscillator is then formed as the difference between fast (34-day) and slow (55-day) EMAs (see Exponential Moving Average) of the volume force.

KVO = EMA[34] of VF - EMA[55] of VF

This is drawn in green, and a trigger line is drawn in red, being a 13-period EMA of the KVO line. The view style (see View Style) has an option to draw the difference between the two lines as a histogram, in MACD style (see MACD).

The raw volume force can be viewed directly as “KVO volume force” under “Low Priority” near the end of the indicator lists.

Copyright 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2014, 2015, 2016, 2017 Kevin Ryde

Chart is free software; you can redistribute it and/or modify it under the terms of the GNU General Public License as published by the Free Software Foundation; either version 3, or (at your option) any later version.