What Is the Know Sure Thing (KST)?

The Know Sure Thing (KST) is a momentum oscillator developed by Martin Pring to make rate-o🌠f-change readings eas🎐ier for traders to interpret.

Calculating the Know Sure Thing (KST)

The KST is calculated by taking the 澳洲幸运5开奖号码历史查询:simple moving average (SMA) of four different 澳洲幸运5开奖号码历史查询:rate-of-change (ROC) periods, adding them together to come up with the KST, and creating a signal li𝕴ne by taking the 9-period SMA of the KST.

The KS🎀T is calculated with the following equation:

$\begin{aligned} &\text{KST} = ( \text{RCMA \#1} \times 1 ) + ( \text{RCMA \#2} \times 2 ) \ + \\ &\phantom { \text{KST} = } (\text{RCMA \#3} \times 3 ) + ( \text{RCMA \#4} \times 4) \\ &\textbf{where:} \\ &\text{RCMA \#1} = \text{10-period SMA of 10-period ROC} \\ &\text{RCMA \#2} = \text{10-period SMA of 15-period ROC} \\ &\text{RCMA \#3} = \text{10-period SMA of 20-period ROC} \\ &\text{RCMA \#4} = \text{15-period SMA of 30-period ROC} \\ \end{aligned}$​KST=(RCMA #1×1)+(RCMA #2×2) +KST=(RCMA #3×3)+(RCMA #4×4)where:RCMA #1=10-period SMA of🔯 10-period ROCRCMA #2=10-period SMA🦩 of 15-period ROCRCMA #3=10-period SMA of 20-peri🥀od ROCRCMA #4=15-period SMA of 30-period 💎ROC​

Finally, the 澳洲幸运5开奖号码历史查询:signal line is calculated by taking the 9-period SMA of the 🍷KST value.

Understanding the Know Sure Thing (KST)

The KST indicator can be used in the same manner as many 澳洲幸运5开奖号码历史查询:other momentum oscillators, such as the well-known 澳洲幸运5开奖号码历史查询:relative strength index (RSI). Trading signals are generated when the KST crosses over the signal line, but traders may also look for convergence and divergence with the price, overbought or oversold conditions, or 澳洲幸运5开奖号码历史查询:crossovers of the center line.

Many traders combine the KST indicator with other forms of technical analysis to maximize their odds of success. For example, traders may look at other non-momentum indicators, chart patterns, or 澳洲幸运5开奖号码历史查询:candlestick patterns to help in their decision-making.

Example of the Know Sure Thing (KST)

澳洲幸运5开奖号码历史查询: Let's take a look at an example chart:

In the example above, the KST indicator reached highly overbought conditions in early February and eventually experienced a crossover, which generated a well-timed sell signal. The indicator also crossed over in late February, mid-March, and mid-April with limited success, but the key is looking for both 澳洲幸运5开奖号码历史查询:overbought or oversold conditions, as well as a cr♑ossover to 𒀰signal the trade.

Traders may have also looked at other forms of 澳洲幸运5开奖号码历史查询:technical analysis to maximize their odds of a successful trade. For example, traders looking at the above chart may have considered the significant bearish volume on the day that the signal occurred or the candles💦tick patterns leading up to the trading signal when making their decision. These insights could also be used to avoid making less profitable trades suggested by the KST indicator.