Klinger oscillator is a volume based crossover oscillator indicator.
As a volume crossover oscillator indicator, Klinger oscillator was created by Stephen Klinger to help traders to know the direction of the market as well as to know whether the market has experienced an oversold or overbought condition by measuring the trend of the flow of money in and out of a given security based on volume. As a volume crossover oscillator,klinger oscillator has an oscillation at point 0.00 and works on the basis of crossover and divergence as well as centerline.
As a crossover oscillator indicator,Klinger oscillator has two crossover lines,The klinger oscillator(KO) mostly indicated by the blue line and the signal line mostly indicated by the green line.
Klinger oscillator is based on high price,low price ,close price and volume.When these four are being combined,they will form what is called the volume force(VF).The volume force will then become an oscillator when the fast EMA of volume force is subtracted to the slow EMA of volume force.
Klinger oscillator is therefore based on two time periods,34 period (FAST EMA)and 55 period(SLOW EMA)
Klinger oscillator is therefore calculated using the following formula;
Klinger oscillator(KO) = 34 Period EMA of volume force(VF) - 55 Period EMA of volume force(VF)
Since klinger oscillator is a volume based oscillator with an oscillation at point 0 and with two crossover lines,it therefore follows that when the two lines crosses above 0,that will be an indication that the market is bullish thus the trader should be trading upwards.On the other hand,when the two lines crosses below 0,that will be an indication of a bearish market thus the trader should be trading downwards.
Based on divergence,when the price is trending upwards when the klinger oscillator is trending downwards,the market will reverse and start trending downwards in the same direction as the klinger oscillator.On the other hand,when the price is trending downwards while the klinger oscillator is trending upwards,the price will reverse and start trending upwards in the same direction as the klinger oscillator. We will not explain this further using chart. Instead, we will further explain the concept of crossover based on overbought and oversold as follows;
1. klinger oscillator oversold cryptocurrency
Based on crossover,the klinger oscillator has two curve lines,the klinger oscillator(KO which is blue in color) and the signal line which is green in color.The klinger oscillator will be crossing above or below the signal line.When the klinger oscillator crosses above the signal line at below 0,that will be an indication of an oversold market thus signaling the cryptocurrency trader to purchase a given amount of cryptocurrency with their USDT balance. The cryptocurrency trader can either place a market buy order which will be processed immediately or they can place a limit buy order which will be processed when the market reaches their limit buy order price. This is indicated as from below;
The above is the TRX market against USDT. Three points are being indicated. There is point A, point B and point C. Point A is the klinger oscillator while point B is the signal line point. On the other hand, point C is the crossover point. At point C, the klinger oscillator has crossed above the signal line at below 0.00 thus an indication of an oversold condition at that point. This signals the cryptocurrency trader to purchase a given amount of TRX with their USDT balance. The trader can either use the market buy order which is being processed immediately or they can use a limit buy order which will be executed when the market reaches their buy limit order price. When the order is being executed, the account of the cryptocurrency trader will start increasing in value if the market is starting to move upwards.
2. klinger oscillator overbought cryptocurrency
Based on crossover,the klinger oscillator has two curve lines,the klinger oscillator(KO which is blue in color) and the signal line which is green in color.The klinger oscillator will be crossing above or below the signal line.When the klinger oscillator crosses below the signal line at above 0.00,that will be an indication of an overbought market thus signaling the cryptocurrency trader to sell a given amount of cryptocurrency which he had previously purchased and is currently holding to avoid declining the value of their account. The cryptocurrency trader can either place a market sell order which will be processed immediately or they can place a limit sell order which will be processed when the market reaches their limit sell order price. This is indicated as from below;
The above is the TRX market against USDT. Three points are being indicated. There is point A, point B and point C. Point A is the klinger oscillator while point B is the signal line point. On the other hand, point C is the crossover point. At point C, the klinger oscillator has crossed below the signal line at above 0.00 thus an indication of an overbought condition at that point. This signals the cryptocurrency trader to sell a given amount of TRX which he had previously purchased and is currently holding . The trader can either use the market sell order which is being processed immediately or they can use a limit sell order which will be executed when the market reaches their sell limit order price. When the order is being executed, the account of the cryptocurrency trader will have increased in value in terms of USDT.
cryptocurrency market is a highly volatile market. As a cryptocurrency trader,whenever you place a buy order,always make sure to apply risk management so that whenever your buy order goes against you, your account do not depreciate so much in value.
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