Extra indicators
KST: Know Sure Thing
A momentum oscillator that combines four rates of change over different periods, weighted towards the longer ones.
La idea en pocas palabras
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.
Cómo se calcula
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)Cómo usarlo
- KST crossing its signal line.
- Zero line as the dividing line between rising and falling markets.
Sacar conclusiones
- Turns of KST far from zero are more significant.
Ejemplo
GER40 weekly: KST crosses above its signal line below zero after a correction, a classic early buy signal.
Los precios de los ejemplos son ilustrativos.
Ten cuidado con
- Slow by design; on short timeframes it lags a lot.
Un poco de historia
Created by Martin Pring and published in 1992.
Solo contenido educativo. Ningún indicador ni patrón predice el futuro, y nada de lo aquí expuesto es asesoramiento de inversión.