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The Klinger Oscillator is a market analysis indicator that that measures trends of money flows based on volume. Three types of data are derived from the Klinger Oscillator: the high/low price range, volume and accumulation/distribution. The Klinger Oscillator can pinpoint short-term fluctuations, yet is accurate enough to track the long-term flow of money moving in and out of a security. The difference between the number of shares accumulated and distributed each day is quantified by the Klinger Oscillator and referred to as “volume force.” A signal line or 13-period moving average is used by the Klinger Oscillator to signify transaction decisions. In addition to a signal line, the Klinger Oscillator uses divergence to identify when price and volume are not confirming the direction of money flows. The Klinger Oscillator works well for timing trades in the direction of a trend, yet the Klinger Oscillator is less effective when going against a trend. Steven J. Klinger developed the Klinger Oscillator to help in both long and short term analysis. |
