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KVO (Klinger Volume Oscillator)

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KVO Indicator Documentation

Syntax

public KVO(Bars bars, int period1, period2, string description)
public static KVOSeries(Bars bars, int period1, period2)

Parameter Description

barsA Bars object
period1The length of the faster EMA of the volume force
period2The length of the slower EMA of the volume force

Description

KVO (developed by Stephen Klinger) is used to determine long-term trends of money flow while remaining sensitive enough to short-term fluctuations. This oscilator compares the volume flowing in and out of a security to price movement.

The oscillator is used together with the Trigger line which is a 13-day exponential moving average of the KVO. It's also possible to build a histogram as the difference between the Klinger Volume Oscillator and its trigger line, and the resulting interpretation will be similar to that of the Moving Average Convergence Divergence (MACD).

Interpretation

  • KVO can be used to confirm the trend or to detect possible trend shifts. For example, a buy signal is generated when the KVO crosses above its trigger line from below after a big drop below the zero level, and a sell signal is generated when the KVO crosses below its trigger line after reaching unusual high levels above zero.
  • A divergence between the close price and the KVO can also generate trading signals, identifying when price and volume are not confirming the direction of the move. A bullish signal is detected when KBO is heading upward while the price of the security continues to fall.

Calculation

Refer to this external article:


Example

using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using WealthLab.Indicators;
using Community.Indicators;

namespace WealthLab.Strategies { public class KlingerDemo : WealthScript { protected override void Execute() { int FastX = 34; int SlowX = 55; int TrigLen = 13; KVO kvo = KVO.Series( Bars,FastX,SlowX ); EMA Trigger = EMA.Series( kvo, TrigLen, EMACalculation.Modern ); Trigger.Description = "Trigger"; ChartPane kvoPane = CreatePane( 30, true, false ); PlotSeries( kvoPane, kvo, Color.Red, LineStyle.Solid, 1 ); PlotSeries( kvoPane, Trigger, Color.Blue, LineStyle.Solid, 1 ); } } }

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