Extra indicators
KST: Know Sure Thing
A momentum oscillator that combines four rates of change over different periods, weighted towards the longer ones.
L’idée en termes simples
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.
Mode de calcul
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)Comment l’utiliser
- KST crossing its signal line.
- Zero line as the dividing line between rising and falling markets.
Tirer des conclusions
- Turns of KST far from zero are more significant.
Exemple
GER40 weekly: KST crosses above its signal line below zero after a correction, a classic early buy signal.
Les prix des exemples sont donnés à titre d’illustration.
Points de vigilance
- Slow by design; on short timeframes it lags a lot.
Un peu d’histoire
Created by Martin Pring and published in 1992.
Contenu éducatif uniquement. Aucun indicateur ni aucune figure ne prédit l’avenir, et rien ici ne constitue un conseil en investissement.