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Bitcoin Klinger Oscillator Example

Klinger Oscillator (KO) is perhaps one of those oscillators in trading that will compensate the price-volume trend. Although there is a PVT (Price-volume Trend) but KO is an add-on feature.

For Bitcoin, you can use this as well but for now I am going to put a special case for Q4-2018 here. BTC is at the verge of breaking the bearish descending triangle (Lower Highs and a flat bottom). However, KO tells a different story.

In the chart below you find these trends:


  1. Jan to Sep a lower high setup - BEARISH
  2. Jan to Sep a lower low setup - BEARISH
  3. Jan to Jun a higher low setup on KO Indicator, confirming a regular bullish divergence.
  4. Jun to mid Aug a hidden bullish divergence, confirming a regular bullish divergence.
  5. Failed rally ahead but KO continues the bullish momentum i.e. higher lows while approaching the end of triangle. 
What will happen next? It is indicated here in my post (investing.com).

Crypto Short: We enter in Q4 with a solid floor defined by descending triangle (Bearish drawing on charts) and Bullish's drawing i.e. regular bullish (Feb - Jun)+hidden bullish divergence (Jun - end Q3). In my books June 24 defined this shift in bearish paradigm and overlooked higher lows are perhaps the leading trends. Even if BTC wicks down to 6200-5800 to implant a confusing pattern, a HIGHER HIGH is quite likely to happen. The set floor only breaks when such a HIGHER HIGH fails to put a rally ahead since by that time BTC will have gained enough momentum to counter trade and fall below the support. Again, unexpected events such as an exchange forced to shut down, or rumors or fake news aren't included in such an assessment. Good luck! (Oct 1, 2018)

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