rounded corner
rounded corner
top border

Indicator Help

Indicator Index
* Members Only

  1. Accumulation / Distribution
  2. Aroon Oscillator *
  3. Aroon Up/Down *
  4. Average Directional Index
  5. Average True Range
  6. Bollinger Bands
  7. Bollinger Band Width *
  8. Chaikin Money Flow Index *
  9. Chaikin Oscillator *
  10. Chaikin Volatility *
  11. Close Location Value *
  12. Commodity Channel Index
  13. Detrended Price Oscillator *
  14. Donchian Channel *
  15. Donchian Channel Width *
  16. Ease of Movement *
  17. Exponential Moving Average
  18. MACD
  19. Mass Index *
  20. Momentum
  21. Money Flow Index
  22. Negative Volume Index *
  23. On Balance Volume
  24. Pcnt Price Oscillator *
  25. Pcnt Volume Oscillator *
  26. Performance *
  27. Positive Volume Index *
  28. Price Envelope
  29. Price Volume Trend *
  30. Rate of Change
  31. Relative Strength Index
  32. Simple Moving Average
  33. Stochastic - Fast
  34. Stochastic - Slow
  35. Stochastic RSI *
  36. Standard Deviation *
  37. Triple Moving Average *
  38. TRIX *
  39. Ultimate Oscillator
  40. Volume
  41. Weighted Moving Average *
  42. Williams Percent R

Close Location Value (CLV)

Not a member? Subscribe now!

The Close Location Value is one of the indicators using the location of Close related to Low and High for the same period. It is, therefore, trying to spot the tendency in the price move of the security.

Calculation

The Close Location Value indicator is calculated like

CLV = ((Close - Low) - (High - Close)) / (High - Low)

This approach is working by determining the location of the Close compared to the Low and High. The indicator oscillates between -1 and 1, the closer the CLOSE is to the High, the closer it is to one, which is considered a bullish signal. The closer period's CLOSE is to Low, the closer the indicator value is to -1, which is considered bearish.

Use

1. When the CLV and a stock price form a positive (negative) divergence, we consider it a bullish (bearish) signal.

2. When the CLV is crossing zero line. Positive CLV is considered bullish and vice versa.

CLV and gaps

The CLV is based on the daily price action, and therefore it is ignoring overnight gaps. Consider the stock falling dramatically overnight, and then regaining part of its value next day. The CLV will actually jump UP, as the "next day" price action is very bullish and the gap is not even considered by the indicator. To avoid this trap, keep an eye open for gaps, and do not rely on fast moves - to detect the divergence with confidence, allow it some time (2+ months) to mature.

 

 

 

 

 

 

 

 


Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2018 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Legal  •   Privacy Statement