Know Sure Thing(KST)
Know Sure Thing indicator was created by Martin Pring.
Know sure thing is a momentum oscillator that is based on smoothed rate of change and is used to measure price momentum with 4 different time frame.
Know Sure Thing indicator is based on divergence,crossover and overbought and oversold in the market.
Know Sure Thing is an oscillator and therefore has an oscillation at point 0.
Know sure thing has two crossover lines,the blue line which represents the know sure thing(KST) and the red line which represents the signal line.
Know sure thing is therefore calculated by following formula as below;
-Taking the simple moving average(SMA) or rate of change (ROC) of four different period as follows
The four are then added together to give the know sure thing (KST) as follows;
Since Know Sure Thing is an oscillator with oscillation at point 0 and is based on divergence(where when the market is moving downwards while the two lines are moving upwards,the market will reverse and start moving in the same direction upwards as the two lines and vice versa).
Know sure thing is also based on crossover and overbought and oversold in the market.Therefore,based on crossover,there are two crossover lines,know sure thing(KST) which is blue in color and the signal line which is red in color.When the know sure thing(KST) line crosses above the signal line at below 0 oscillation point,that will be an indication of an oversold market at that point thus the traders should close any sell position and open a buy position since the market will start moving upwards at that point.On the other hand,if the know sure thing(KST) line crosses below the signal line at above 0 oscillation point,that will be an indication of an overbought market at that point thus the traders should close any buy position and open a sell position since the market will start moving downwards.This is indicated as from the candle sticks chart below;
From the candle sticks chart above,there are 4 points,point A,B,C and D. Point A is an overbought market while point B is an oversold market.Point C which is blue in color represents the know sure thing(KST) while point D which is red in color represents the singal line.
At point A,the know sure thing(KST) has crossed below the signal line at above 0 oscillation point thus an indication of an overbought market at that point.This will signal the trader to close any buy position and open a sell position since the market is starting to move downwards.On the other hand,at point B,the know sure thing(KST) has crossed above the signal line thus an indication of an oversold market at that point.This will signal the trader to close any sell position and open a buy position since the market is starting to move upwards.
Know sure thing is a momentum oscillator that is based on smoothed rate of change and is used to measure price momentum with 4 different time frame.
Know Sure Thing indicator is based on divergence,crossover and overbought and oversold in the market.
Know Sure Thing is an oscillator and therefore has an oscillation at point 0.
Know sure thing has two crossover lines,the blue line which represents the know sure thing(KST) and the red line which represents the signal line.
Know sure thing is therefore calculated by following formula as below;
-Taking the simple moving average(SMA) or rate of change (ROC) of four different period as follows
ROCSMA1= 10 period SMA of 10 period ROC
ROCSMA2= 10 period SMA of 15 period ROC
ROCSMA3= 10 period SMA of 20 period ROC
ROCSMA4 = 10 period SMA of 30 period ROC
The four are then added together to give the know sure thing (KST) as follows;
KST= (ROCSMA1*1)+(ROCSMA2*1)+(ROCSMA3*1)+(ROCSMA4*1)
Since Know Sure Thing is an oscillator with oscillation at point 0 and is based on divergence(where when the market is moving downwards while the two lines are moving upwards,the market will reverse and start moving in the same direction upwards as the two lines and vice versa).
Know sure thing is also based on crossover and overbought and oversold in the market.Therefore,based on crossover,there are two crossover lines,know sure thing(KST) which is blue in color and the signal line which is red in color.When the know sure thing(KST) line crosses above the signal line at below 0 oscillation point,that will be an indication of an oversold market at that point thus the traders should close any sell position and open a buy position since the market will start moving upwards at that point.On the other hand,if the know sure thing(KST) line crosses below the signal line at above 0 oscillation point,that will be an indication of an overbought market at that point thus the traders should close any buy position and open a sell position since the market will start moving downwards.This is indicated as from the candle sticks chart below;
From the candle sticks chart above,there are 4 points,point A,B,C and D. Point A is an overbought market while point B is an oversold market.Point C which is blue in color represents the know sure thing(KST) while point D which is red in color represents the singal line.
At point A,the know sure thing(KST) has crossed below the signal line at above 0 oscillation point thus an indication of an overbought market at that point.This will signal the trader to close any buy position and open a sell position since the market is starting to move downwards.On the other hand,at point B,the know sure thing(KST) has crossed above the signal line thus an indication of an oversold market at that point.This will signal the trader to close any sell position and open a buy position since the market is starting to move upwards.
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