Klinger Volume Oscillator (KVO)

Overview

The Klinger Volume Oscillator represents a revolutionary approach to volume analysis, developed by Stephen Klinger after extensive research into the work of volume pioneers like Joseph Granville, Larry Williams, and Marc Chaikin. Unlike traditional volume indicators that simply measure raw volume levels, the KVO calculates "volume force" by considering the relationship between price range (High - Low) as movement and volume as the force behind that movement. The indicator's genius lies in its dual-purpose design: sensitive enough to capture short-term tops and bottoms for active traders, yet robust enough to reveal long-term money flow patterns for investors. This is achieved through the calculation of the difference between a 34-period and 55-period EMA of volume force, creating an oscillator that smoothly transitions between accumulation and distribution phases.

What sets the KVO apart is its sophisticated approach to trend determination using the sum of High + Low + Close. When today's sum exceeds the previous day's, the indicator recognizes accumulation; when it falls below, distribution is occurring. This seemingly simple concept, when combined with volume analysis, creates a powerful leading indicator that often signals reversals before they appear in price action. The KVO oscillates around a zero line, with positive values indicating net accumulation and negative values showing distribution. A 13-period signal line is typically added to generate crossover signals, similar to the MACD structure. The indicator's ability to detect divergences between price trends and volume behavior makes it particularly valuable for identifying weakening trends and potential reversal points where smart money is quietly positioning against the prevailing trend.

Interpretation & Trading Signals

Example Usage

Code examples will be available once the Rust implementation is complete.