Klinger Oscillator

AAA

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.

INVESTOPEDIA EXPLAINS '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. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  2. Indicator

    Statistics used to measure current conditions as well as to forecast ...
  3. Moving Average Convergence Divergence ...

    A trend-following momentum indicator that shows the relationship ...
  4. Money Flow

    Calculated by averaging the high, low, and closing prices, and ...
  5. Divergence

    When the price of an asset and an indicator, index or other related ...
  6. Oscillator

    A technical analysis tool that is banded between two extreme ...
Related Articles
  1. An Introduction To The Relative Strength ...
    Active Trading

    An Introduction To The Relative Strength ...

  2. Stochastics: An Accurate Buy And Sell ...
    Forex Education

    Stochastics: An Accurate Buy And Sell ...

  3. Momentum Indicates Stock Price Strength
    Trading Strategies

    Momentum Indicates Stock Price Strength

  4. An Introduction To Oscillators
    Active Trading

    An Introduction To Oscillators

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center