KVO MQ4 Indicator – This oscillator based on turnovers has been developed by Stephen Klinger.
Trading NOTES
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- Use a demo account or a small live account first to practice this trading system
The oscillator is calculated in seven steps:
- The average typical price is calculated – (H+L+C)/3
- If the current typical price is greater than the average typical price of the previous bar, the turnover of the current bar gets a “plus” sign
- If the current typical price is less than the average typical price of the previous bar, the turnover of the current bar gets a “minus” sign
- A 34-period EMA of the turnover obtained in steps 2 or 3 is calculated
- A 55-period EMA of the turnover obtained in steps 2 or 3 is calculated
- The 34-period EMA is subtracted from the 55-period EMA; the result is plotted on the chart as a histogram
- The EMA of the difference obtained in step 6 is calculated and plotted on the chart