The definition I know for sure (KST)’
You know, of course, and KST is a momentum oscillator developed by Martin Pring, to make the rate of change of readings easier for traders to interpret. In 1992, stock and commodity article, Mr. Pring call indicator as the “summed rate of change (KST)”, but the term KST is stuck with technical analysts. The indicator is relatively common in technical analysis oscillators preferring to make decisions.
Penetration know exactly (KST)’
Know exactly calculates the simple moving average (SMA) or four different rate-of-change (ROC) during the periods, combining them together to come up with FST, and the creation of signal lines, taking the 9-period moving average of KST.
The rate of change calculations include:
- RCMA #1 = 10-day SMA of 10-period ROC
- RCMA #2 = 10-period moving average on the 15-period ROC
- RCMA #3 = 10-period moving average on the 20 period ROC
- RCMA #4 = 15-period moving average on a 30-period ROC
The FTC is calculated using the following equation:
KST = (RCMA #1 x 1) + (RCMA #2 x 2) + (RCMA #3 x 3) + (RCMA #4 x 4)
And finally, the line signal is calculated on the basis of the 9-period SMA of KST values.
Translation Know, Of Course
You know the true figure may be used in the same way as many other oscillators, such as the famous relative strength index (RSI). Trading signals are generated when the KST crosses below the signal line, but traders can also look for convergence and divergence with the price, conditions of overbought and oversold, or crossing the center line.
Many traders combine the indicator KST with other forms of technical analysis to maximize your chances of success. For example, traders can look at other rooms-indicators, patterns or candlestick patterns to aid in decision-making.
Let’s look at the example chart:
In the above example, the indicator KST has reached a much overbought in early February, and in the end experienced a crossover, which creates a timely sell signal. The indicator is also crossed in late February, mid-March to mid-April with limited success, but the key is looking for how the terms oversold and overbought, as well as crossover to signal.
Traders can also look at other forms of technical analysis to maximize your chances of a successful trade. For example, traders looking at the chart above, can be considered a significant bearish Volume on the day that the signal has occurred or candlestick patterns, leading to a trading signal when deciding. These findings can also be used to avoid less profitable deals, the proposed indicator KST.
Courtesy schedule TradingView.com.