Klinger (Klinger Volume Oscillator)

The Klinger Volume Oscillator (KVO) is a volume-based indicator developed by Stephen Klinger. It measures the long-term trend of money flow while remaining sensitive enough to detect short-term fluctuations. KVO combines volume with price movement direction to determine the force behind price trends.

KVO calculates the "Volume Force" based on the trend direction and the high-low-close range:

Trend = +1 if (H+L+C) > (H_prev+L_prev+C_prev), else -1
dm = High - Low
cm = dm + cm_prev  (if trend unchanged), else dm
Volume Force = Volume x |2*(dm/cm) - 1| x Trend x 100
KVO = EMA(Volume Force, fast) - EMA(Volume Force, slow)
Signal = EMA(KVO, 13)

The oscillator fluctuates around zero, with a signal line for crossover signals.

• Two-speed analysis — fast EMA (34) and slow EMA (55) capture different timeframes
• Volume Force concept — quantifies the directional power of volume
• Signal line — 13-period EMA of KVO provides crossover signals
• Oscillates around zero — positive = buying pressure, negative = selling pressure
• Unbounded — no fixed range, values depend on volume magnitude

Zero line crossover

• KVO crosses above 0 — buying pressure dominates, bullish signal
• KVO crosses below 0 — selling pressure dominates, bearish signal

Signal line crossover

• KVO crosses above Signal — short-term momentum turning bullish
• KVO crosses below Signal — short-term momentum turning bearish

Divergence

• Bullish divergence: Price makes lower low, KVO makes higher low
• Bearish divergence: Price makes higher high, KVO makes lower high

| Parameter | Default | Description | |-----------|---------|-------------| | Fast period | 34 | Fast EMA period for Volume Force | | Slow period | 55 | Slow EMA period for Volume Force |

| Condition | Meaning | |-----------|---------| | KLINGER(34,55) cross_over 0 | KVO crossed above zero — bullish | | KLINGER(34,55) cross_under 0 | KVO crossed below zero — bearish | | KLINGER(34,55) > 0 | Buying pressure is dominant | | KLINGER(34,55) < 0 | Selling pressure is dominant |

• KVO works best in trending markets; can produce whipsaws in choppy conditions
• Use the signal line crossover for entry timing, zero line for trend direction
• Combine with a trend indicator (SMA, EMA) to filter signals in the trend direction
• KVO divergences with price often precede significant reversals
• Best suited for crypto and stocks where volume data is reliable
• Default parameters (34/55) work well for most markets; adjust for faster/slower signals