Klinger Volume Divergence Indicator

The Klinger Volume Divergence Indicator tool identifies potential trend reversals and continuations by detecting divergences between price action and the Klinger Volume Oscillator (KVO).

Usage

The Klinger Volume Divergence Indicator is primarily used to spot discrepancies between price movement and volume flow. By replacing standard momentum oscillators like RSI with the Klinger Volume Oscillator, this tool focuses specifically on volume-based accumulation and distribution.

Users can look for four distinct signal types:

• Regular Bullish Divergence: Occurs when price makes a lower low but the KVO makes a higher low, suggesting a potential upward reversal.
• Regular Bearish Divergence: Occurs when price makes a higher high but the KVO makes a lower high, suggesting a potential downward reversal.
• Hidden Bullish Divergence: Occurs when price makes a higher low but the KVO makes a lower low, often signaling trend continuation.
• Hidden Bearish Divergence: Occurs when price makes a lower high but the KVO makes a higher high, also signaling trend continuation.

The oscillator line is color-coded to represent volume pressure: green indicates positive volume (buying pressure) above the center line, while red indicates negative volume (selling pressure) below the center line.

Details

The indicator calculates the Klinger Volume Oscillator by comparing the high, low, and close (HLC3) to the previous period to determine volume direction. It then calculates the difference between a 34-period and 55-period exponential moving average (EMA) of this volume force.

To identify divergences, the script uses pivot point logic (lookback left and right) to find peaks and valleys in both price and the oscillator. When the relationship between these pivots differs between price and volume, a divergence label is plotted on the chart.

Settings

Pivot Lookback

• Pivot Lookback Right: Sets the number of bars to the right of a pivot point required for confirmation.
• Pivot Lookback Left: Sets the number of bars to the left of a pivot point required for identification.
• Max of Lookback Range: The maximum number of bars to look back when searching for a preceding pivot point.
• Min of Lookback Range: The minimum number of bars required between the current and preceding pivot point.

Visibility

• Plot Bullish: Toggles the visibility of regular bullish divergence signals.
• Plot Hidden Bullish: Toggles the visibility of hidden bullish divergence signals.
• Plot Bearish: Toggles the visibility of regular bearish divergence signals.
• Plot Hidden Bearish: Toggles the visibility of hidden bearish divergence signals.

FAQ

How do I access the Klinger Volume Divergence Indicator?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What makes the Klinger Volume Divergence different from RSI divergence?

While RSI measures price momentum, the Klinger Volume Oscillator measures volume flow and pressure, making this tool more sensitive to accumulation and distribution phases.

Can I set alerts for these signals?

Yes, the indicator includes built-in alert functionality for all four types of divergence signals (Bullish, Hidden Bullish, Bearish, and Hidden Bearish).