What Is the Know Sure Thing (KST)?

The Know Sure Thing (KST) is a momentum oscillator developed by Martin Pring to make rate-of-cha🤡nge read𝔍ings easier for traders to interpret.

Calculating the Know Sure Thing (KST)

The KST is calculated by taking the 澳洲幸运5官方开奖结果体彩网:simple moving average (SMA) of four different 澳洲幸运5官方开奖结果体彩网:rate-of-change (ROC) periods, adding them together to come up w💟ith the KST, and creating a signal line by taking the 9-period SMA of the KST.

The ꩵKST 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&ཧnbsp;ROCRCMA #2=10-period🌄 SMA of 15-period ROCRCMA #3=10-period&nᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚbsp;SMA of 20-period ROCRCMA #4=15-period SMA of 30-period&nbs🐓p;ROC​

Finally, the 澳洲幸运5官方开奖结果体彩网:signal line is calculated by taking the 9-period SMA of t🌳he 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官方开奖结果体彩网:other momentum oscillators, such as the well-known 澳洲幸运5官方开奖结果体彩网: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官方开奖结果体彩网: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官方开奖结果体彩网:candlestick patterns to help in their decision-making.

Example of the Know Sure Thing (KST)

澳洲幸运5官方开奖结果体彩网: 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官方开奖结果体彩网:overbought or oversold conditions, as well as a crossover to ꦅsignal the trade.

Traders may have also looked at other forms of 澳洲幸运5官方开奖结果体彩网: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 candlestick patterns leading up to 🌠thꦫe trading signal when making their decision. These insights could also be used to avoid making less profitable trades suggested by the KST indicator.