129 Klinger Oscillator (kvo)

The idea of this index is to monitor volume given changes in prices. Volume is positive when price is up or negative when price is down. Two types of moving averages are then applied to these data to convert it into an oscillator. The idea is to show how the volume flowing through the securities is impacting its long-term and short-term price direction.

Traders watch for crossovers on the indicator to signal potential price reversals.

Figure 13.17: Klinger