This indicator adds conditional coloring of the Klinger line when over / under the signal along with a transparent fill cloud between both lines colored by the same condition. You can change colors to your preference on the style configurations.
Below is more information on the KIinger Oscillator from investopedia:
Interpretations for Price Direction
The Klinger Oscillator is fairly complex to calculate, but it's based on the idea of force volume, which accounts for volume, trend (positive or negative), and temp (based on multiple inputs and if/then statements). Using this data, the oscillator is created by looking at the difference between two exponential moving averages of force volume involving different time frames (typically 34 and 55). The idea is to show how the volume flowing through the securities is impacting its long-term and short-term price direction.
The Signal Line
A signal line (13-period moving average) is used to trigger buy or sell signals. This technique is very similar to signals that are created with other indicators such as the moving average convergence divergence (MACD). While these are the basic signals generated by these indicators, it's important to note that these techniques may generate a lot of trading signals that may not be as effective in sideways markets.
When an asset is in an overall uptrend—such as when it is above its 100-period moving average and the Klinger is above zero or moving above zero—traders could buy when the Klinger oscillator moves above the signal line from below.
Klinger noted that when a stock was in an uptrend, and then dropped to unusually low levels below zero, and then moved above its signal line, this was a favorable long position to take.
When an asset is in an overall downtrend, traders could sell or short-sell when the Klinger oscillator moves below the signal line from above. Klinger noted this was especially noteworthy when the indicator had seen an uncharacteristic spike above zero.
The zero line is also used by some traders to mark the transition from an uptrend to downtrend, or vice versa. While such signals won't always agree with price movements, a move above zero helps confirm a rising price, while a drop below zero helps confirm a falling price.
Klinger Oscillator and Divergence
The Klinger oscillator also uses divergence to identify when the indicator's inputs are not confirming the direction of the price move. It's a bullish sign when the value of the indicator is heading upward while the price of the security continues to fall. It is a bearish signal when the price is rising but the indicator is falling. Divergence can be coupled with signal line crossovers to generate trades. For example, if a bearish divergence forms, a sell or short-sell could be initiated the next time the Klinger crosses below the signal line.
you can modify how it looks on the configuration style panel 👍
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