what is the klinger oscillator 
the klinger oscillator was developed by stephen klinger to determine the long term trend of money flow while remaining sensitive enough to detect short term fluctuations the indicator compares the volume flowing through securities with the security s price movements and then converts the result into an oscillator the klinger oscillator shows the difference between two moving averages which are based on more than price traders watch for divergence on the indicator to signal potential price reversals like other oscillators a signal line can be added to provide additional trade signals traders will use tools such as trendlines moving averages and other indicators to confirm trade signals in addition traders may use the oscillator in conjunction with chart patterns such as price channels or triangles as a way to confirm a breakout or breakdown crossovers occur frequently as do divergences so the indicator is best used in conjunction with these other technical trading methods formula for the klinger oscillator k o 3 4 period e m a of v f 5 5 period ema of v f where ko klinger oscillator vf volume force volume force v 2 d m c m 1 t 1 0 0 v volume t trend trend 1 if h l c h 1 l 1 c v 1 trend 1 if above is or h high l low c close d m h l c m c m 1 d m if trend trend 1 begin aligned ko 34 text period ema text of vf 55 text period ema of vf textbf where text ko text klinger oscillator text vf text volume force text volume force v times 2 times dm cm 1 times t times 100 v text volume t text trend text trend 1 text if h l c h 1 l 1 cv 1 text trend 1 text if above is text or h text high l text low c text close dm h l cm cm 1 dm text if trend text trend 1 cm dm 1 dm text if trend text trend 1 end aligned ko 34 period ema of vf 55 period ema of vfwhere ko klinger oscillatorvf volume forcevolume force v 2 dm cm 1 t 100v volumet trendtrend 1 if h l c h 1 l 1 cv 1 trend 1 if above is or h highl lowc closedm h lcm cm 1 dm if trend trend 1 calculating the klinger oscillator e m a c a e b where c current period s vf a 2 x 1 where x is the moving average e prior period s e m a begin aligned ema c times a e times b textbf where c text current period s vf begin aligned a 2 x 1 text where x text is the moving average text period 34 or 55 end aligned e text prior period s ema b 1 a end aligned ema c a e b where c current period s vfa 2 x 1 where x is the moving average e prior period s ema interpretations for price directionthe klinger oscillator is fairly complex to calculate but it s based on the idea of force volume which accounts for volume trend positive or negative and temp based on multiple inputs and if then statements using this data the oscillator is created by looking at the difference between two exponential moving averages of force volume involving different time frames typically 34 and 55 the idea is to show how the volume flowing through the securities is impacting its long term and short term price direction a signal line 13 period moving average is used to trigger buy or sell signals this technique is very similar to signals that are created with other indicators such as the moving average convergence divergence macd while these are the basic signals generated by these indicators it s important to note that these techniques may generate a lot of trading signals that may not be as effective in sideways markets 