KST – Know Sure Thing Indicator

Creator: Martin Pring

• Period 1: 10
• Period 2: 15
• Period 3: 20
• Period 4: 30
• ROC average: 10
• KST average: 10

In the KST indicator, two lines are plotted below the chart.

1. Green line represents KST indicator
2. Red line represents the Average line of KST indicator

This Momentum Oscillator based on smoothed rate-of-change over four different timeframes is known as Know Sure Thing (KST).

In KST, price momentum is measured for four different price cycles, and then combined into one Momentum Oscillator. KST indicator is derived from the sum of weighted rate of change indicators. The shorter timeframe carries the least weight, whereas long-term timeframes carry greater weight.

The KST fluctuates around the zero line. The KST above the line is a bullish indicator. It shows that the weighted smoothed ROC trends are positive and prices are in a strong uptrend. A KST reading below zero indicates a bearish trend.

A KST above its average line is bullish, whereas a KST below its average line is bearish. As opposed to the RSI Momentum Oscillator, the KST indicator has no upper or lower extremes.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder on RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. It is calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin-Ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.