Klinger Volume Oscillator Smoothing, Bands, and Divergence Signals
Summary
This indicator calculates a volume oscillator by assigning volume a positive or negative sign according to whether the selected price source rose or fell, then subtracting a slower exponential average from a faster one. The script provides optional smoothing, a second signal line, and Bollinger Band or Donchian Channel overlays. Users can choose different moving average types and reference another timeframe for coloring and alerts.
It also marks regular and hidden bullish or bearish divergences by comparing price pivots with oscillator pivots, and offers alerts for centerline, signal line, and band crossings. These are configurable analysis and display tools, not evidence of a profitable trading rule: the document supplies no tested results, and it does not explain execution or position sizing. Its volume-sign calculation and chosen smoothing settings may also affect how signals behave across instruments and timeframes.
Key ideas
- The oscillator is the difference between two exponential averages of signed volume.
- Optional smoothing and signal lines provide alternate ways to view the oscillator.
- Bollinger Bands or Donchian Channels can be plotted around oscillator values.
- Price and oscillator pivots are compared to identify regular and hidden divergence patterns.
- Alerts are available for oscillator crossings and divergence conditions.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.