Klinger Volume Oscillator (KVO) was developed by Stephen Klinger. KVO has two features that may seem opposed to each other at the first glance: it is quite sensitive to the signals of short-term tops and bottoms but at the same time it displays long-term money flows heading to and out of the market quite accurately.
KVO indicator is based on the following principles:
Klinger recommends the following basic concepts when applying KVO:
It should be repeated that KVO works well during trade operations in direction of a trend and is less efficient in case working against a trend.
Author: Nikolay Kositsin