To generalize simply, the Klinger oscillator compares the EMAs of price and volume of a specific security in order to determine long-term trends in money flow.Īlthough it is hard to understand, the Klinger oscillator is an exceptional tool that is used extensively in the technical analysis community due to its predictive value. In addition to EMAs, the Klinger oscillator uses volume force to measure the number of units of a security, open/closing prices, and if/then statements. The default settings of the Klinger oscillator measure a 34-period EMA (a shorter EMA) and a 55-period EMA (a longer EMA).
When a shorter EMA (shorter time periods) assumes a greater value than a longer EMA (longer time periods), it means that the price of a certain security is on an uptrend.Ĭonversely, when a higher EMA takes on a greater value than a shorter EMA, it suggests that the price of a specific security is experiencing a downtrend. The Klinger oscillator measures the EMA of both price and volume.
OSCULATOR TEMPLATES SERIES
Similar to most oscillators, the Klinger oscillator depends on differences between two specific exponential moving averages (EMA). An exponential moving average (EMA) is a statistical calculation used to analyze recent data points through the creation of averages within the series of data. In order to simplify such a technical topic, it is beneficial to illustrate the steps that are taken during the Klinger oscillator operation process. Investors may also use the Klinger oscillator in conjunction with trendlines, price channels, or triangles to confirm price breakouts or breakdowns. The Klinger oscillator can be combined with other popular indicators, such as the Stochastic oscillator, in order to increase overall relevance, accuracy, and dependability.
The Klinger oscillator is based on the concept of force volume, which consists of volume itself, price trends, and temp (a number of if/then statements comprising volume/price). In addition, it predicts price reversals in a financial market by extensively comparing volume to price. Volume refers to how many units of a security are trading per unit of time. The Klinger oscillator is a financial tool that was designed by Stephen Klinger in 1977 to predict long-term trends in money flow while also detecting short-term fluctuations.