Klinger Oscillator

What is ‘Klinger Oscillator’

A technical indicator developed by Stephen Klinger that is used to determine long-term trends of money flow while remaining sensitive enough to short-term fluctuations to enable a trader to predict short-term reversals. This indicator compares the volume flowing in and out of a security to price movement, and it is then turned into an oscillator.

Explaining ‘Klinger Oscillator’

A signal line (13-period moving average) is used to trigger transaction decisions. This technique is very similar to signals that are created with other indicators such as the ‘moving average convergence divergence’.

The Klinger Oscillator also uses divergence to identify when price and volume are not confirming the direction of the move. It is considered to be a bullish sign when the value of the indicator is heading upward while the price of the security continues to fall. Traders will use other tools such as trendlines, moving averages and other indicators to confirm the reversal.

Interpretation of the Klinger Oscillator:

When the Klinger Oscillator is above zero, it indicates bullish market conditions and a potential uptrend. When it is below zero, it indicates bearish market conditions and a potential downtrend. A trend reversal is indicated when the Klinger Oscillator crosses over zero.

Limitations of the Klinger Oscillator:

Like all technical indicators, the Klinger Oscillator is not perfect and should not be used in isolation. It is important to consider other factors and indicators, such as price and volume, when making investment decisions. Additionally, the Klinger Oscillator may produce false signals in choppy or sideways markets.


The Klinger Oscillator is a useful tool for identifying trend strength and potential trend reversals in financial markets. It should be used in conjunction with other indicators and factors, and traders should be aware of its limitations in choppy or sideways markets.

Further Reading