Extra indicators
KST: Know Sure Thing
A momentum oscillator that combines four rates of change over different periods, weighted towards the longer ones.
Die Idee in einfachen Worten
Short, medium and long momentum each tell part of the story. KST adds four smoothed rates of change so that signals happen only when they broadly agree.
So wird gerechnet
Smooth ROC(10), ROC(15), ROC(20) and ROC(30) with SMAs of 10, 10, 10 and 15 candles, weight them 1, 2, 3 and 4 and add them up. Signal = SMA(9) of KST.
KST = 1·SMA(ROC10,10) + 2·SMA(ROC15,10) + 3·SMA(ROC20,10) + 4·SMA(ROC30,15)
Signal = SMA(KST, 9)Anwendung
- KST crossing its signal line.
- Zero line as the dividing line between rising and falling markets.
Schlüsse ziehen
- Turns of KST far from zero are more significant.
Beispiel
GER40 weekly: KST crosses above its signal line below zero after a correction, a classic early buy signal.
Kurse in Beispielen dienen der Veranschaulichung.
Worauf man achten sollte
- Slow by design; on short timeframes it lags a lot.
Ein wenig Geschichte
Created by Martin Pring and published in 1992.
Nur Bildungsinhalte. Kein Indikator und kein Muster sagt die Zukunft voraus, und nichts hier ist eine Anlageberatung.