Charts

Klinger Volume Oscillator (KVO)

Description

Klinger Volume Oscillator, developed by Stephen Klinger, uses the key price compared to the prior bar's key price to assign volume as positive or negative value.

Formula

$Key\;Price_{t} = \frac{High_{t} + Low_{t} + Close_{t}}{3}$

$Key\;Price_{t-1} = \frac{High_{t-1} + Low_{t-1} + Close_{t-1}}{3}$

$Trend = \begin{pmatrix} if\;Key\;Price_{t} > Key\;Price_{t-1}, & Volume \\ if\;Key\;Price_{t} < Key\;Price_{t-1}, & -Volume & \end{pmatrix}$

$KVO = EMA_{short-period}(Trend) - EMA_{long-period}(Trend)$

$KVO\;Signal = EMA_{singal}(KVO)$

where

$EMA = exponential\;moving\;average\;of\;user\;defined\;lengths\;of\;short-period,\;long-period,\;and\;signal.$