Klinger Oscillator & Williams Alligator Indicator

by | Aug 9, 2020

Disclaimer: Posts on the HyperTrader blog and associated HyperLinq websites are for educational and informational purposes only. These posts should not be taken as financial advice, nor are they meant to be viewed as trading advice. HyperLinq Inc. or the authors take no responsibility for any damages or losses.

When trading crypto assets, it is crucial to recognize market conditions. Crypto traders will use several technical analysis tools at the same time to better understand market conditions. In this blog, we will discuss two technical indicators, the Klinger Oscillator & Williams Alligator Indicator, which help crypto traders make better trading decisions in markets like BTC & ETH.

What is Klinger Oscillator?

Klinger oscillator is a volume-based crossover oscillator indicator. Stephen Klinger founded the Klinger oscillator to assist traders in comprehending the direction of the market and also to determine whether the crypto market has encountered an oversold or overbought condition, which is measured by the trend of trade volume that is coming in and out of the given crypto asset, like Bitcoin. Klinger Oscillator has two crossover lines and is frequently depicted by a blue line and the signal line mostly shown as a green line.

The Klinger Oscillator is established from the assets high, low, & close price and volume. When these four factors combined, they will generate what is called a volume force(VF). The volume force will then become an oscillator when the fast EMA of volume force is subtracted to the slow EMA of volume force. 

A 13-period moving average commonly follows the Klinger Oscillator. Crypto traders will usually plot this individually since moving averages is its indicator if the 13-period EMA intersects with the Klinger while upward, this is deemed a bullish signal. If the 13-period EMA intersects the Klinger during a downtrend; this is regarded as a bearish signal. The Klinger Oscillator is classified as a trend reversal indicator. It depends on the idea of a volume force. The volume force includes a combination of factors where trend and volume are potent influences.

Williams Alligator Oscillator 

Klinger Oscillator & Williams Alligator Indicator
Klinger and Williams Alligator Oscillator on HyperTrader

Bill Williams founded the Williams Alligator Indicator. The Alligator indicator reflects the theory that markets and individual asset trend, just about 15% to 30% of the time. Williams Alligator can make the difference for a trader when it comes to losing and winning trading strategy. The indicator consists of three lines, moving averages that depict the jaw, the teeth and the lips of the Alligator indicator, and was formulated to help traders authenticate the appearance of a trend and the market direction. The moving averages that create the Alligator indicator can usually serve as powerful support or resistance for a crypto asset. The crypto trader can use it as a buy or sell signal depending on which direction the lines cross. 

Williams often associated trading factors of the indicator to animals. When the market is pointing a down signal for a short position, William will represent it like an alligator sleeping. Simultaneously, a long position and an upward trend would be deemed an alligator awakening. When the three MA lines change extensively, the pattern will depict an alligator mouth being fed. Nevertheless, when the three MA lines begin to narrow and meet, it symbolizes that the crypto asset trend is fading and may soon reverse. 

After the moving averages have been plotted into the future, this indicator will work even more useful with a momentum indicator like CCI.

Williams Alligator is difficult, but a practical and useful technical analysis indicator, produced by a well-known forex trader. This indicator can be applied across multiple asset groups like forex, commodities, stock indices, and cryptocurrencies.  

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Head of Content Marketing @ HyperLinq. His love for Chai and mountains precedes everything. Often wonders about things like, "why $1 earned through leverage feels 100x better than $1 earned selling your time?"
Head of Content Marketing @ HyperLinq. His love for Chai and mountains precedes everything. Often wonders about things like, "why $1 earned through leverage feels 100x better than $1 earned selling your time?"

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