Klinger Oscillator

DEFINITION of 'Klinger Oscillator'

A technical indicator developed by Stephen Klinger that is used to determine long-term trends of money flow while remaining sensitive enough to short-term fluctuations to enable a trader to predict short-term reversals. This indicator compares the volume flowing in and out of a security to price movement, and it is then turned into an oscillator.

BREAKING DOWN 'Klinger Oscillator'

A signal line (13-period moving average) is used to trigger transaction decisions. This technique is very similar to signals that are created with other indicators such as the 'moving average convergence divergence'.

The Klinger Oscillator also uses divergence to identify when price and volume are not confirming the direction of the move. It is considered to be a bullish sign when the value of the indicator is heading upward while the price of the security continues to fall. Traders will use other tools such as trendlines, moving averages and other indicators to confirm the reversal.

RELATED TERMS
  1. Confirmation

    The use of an additional indicator or indicators to substantiate ...
  2. Force Index

    The Force Index is an oscillator that fluctuates above and below ...
  3. Ease Of Movement

    A technical momentum indicator that is used to illustrate the ...
  4. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used ...
  5. Confirmation On A Chart

    An indicator or chart pattern that provides evidence that the ...
  6. Chande Momentum Oscillator

    A technical momentum indicator invented by the technical analyst ...
Related Articles
  1. Insurance

    Exploring Oscillators and Indicators: Conclusion

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The goal of every short-term trader is to determine the direction of a given asset's momentum and to attempt to profit from ...
  2. Insurance

    Exploring Oscillators and Indicators: Leading And Lagging Indicators

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com Indicators can be separated into two main types - leading and lagging - both differing in what they show users. Leading ...
  3. Trading Strategies

    Technical Analysis: Indicators And Oscillators

    By Cory Janssen, Chad Langager and Casey MurphyIndicators are calculations based on the price and the volume of a security that measure such things as money flow, trends, volatility and momentum. ...
  4. Trading Strategies

    Beginner's Guide To Stockcharts.com: Indicators

    Indicators are calculations based on price and volume history of a ticker. There are many different indicators, each with a unique formula used to measure such things as volatility, momentum, ...
  5. Technical Indicators

    The Top Technical Indicators For Commodities Investing

    Traders can use "the usual suspects" (standard indicators for trend trading) when it comes to choosing indicators for investing in commodities. Here's how.
  6. Investing

    Use The Percentage Price Oscillator: The "Elegant Indicator" For Picking Stocks

    Technical analysis is basically an attempt to disprove the credo that "Past performance is not indicative of future results." The percentage price oscillator, which measures momentum, is among ...
  7. Insurance

    Exploring Oscillators and Indicators: Stochastic Oscillator

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The stochastic oscillator is another well-known momentum indicator used in technical analysis. The idea behind this indicator ...
  8. Technical Indicators

    Four Commonly Used Indicators In Trend Trading

    No single indicator can punch a ticket to market riches, but here are four that remain popular among trend traders.
  9. Forex Education

    Introduction

    View this slideshow to learn the key indicators used in successful trading.
  10. Trading Strategies

    Technical Analysis: Conclusion

    By Cory Janssen, Chad Langager and Casey MurphyThis introductory section of the technical analysis tutorial has provided a broad overview of technical analysis. Here's a brief summary of what ...
RELATED FAQS
  1. How do you know where on the oscillator you should make a purchase or sale?

    Learn more about oscillator indicators, technical momentum measures that are used by traders to predict potential market ... Read Answer >>
  2. What are the best technical indicators to complement the Moving Average (MA)?

    Learn about some of the common confirmation tools and techniques that traders and analysts use in conjunction with moving ... Read Answer >>
  3. What are the best technical indicators to complement the Ease Of Movement Indicator?

    Find out what kinds of technical indicators and oscillators make the most beneficial confirmation tools when used with the ... Read Answer >>
  4. What do traders determine when there is divergence between an oscillator and a moving ...

    Understand the basics of divergence between a moving average and an oscillator and how this signal is interpreted by traders ... Read Answer >>
  5. What precisely is a stochastic oscillator meant to predict?

    Gain a basic understanding of the stochastic oscillator and how this technical indicator is designed to predict reversals ... Read Answer >>
  6. What is a common strategy traders implement when using the Ultimate Oscillator?

    Learn what the ultimate oscillator is and find out about a common strategy traders use with the oscillator to signal entries ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center