KST = (RCMA #1 ☓1)+(RCMA #2 ☓2)+(RCMA #3 ☓3)+(RCMA #4 ☓4)Īfter using the above formula, one would have to find out the SMA value of the KST for all the nine periods for the last step of signal line. In order to compute the KST, use the following equation −
Taking the simple moving average (SMA) of four distinct rate-of-change (ROC) periods and adding them together to obtain the KST, and then constructing a signal line by taking the 9-period SMA of the KST, is how the KST is calculated. Traders may also combine the KST with other technical analysis techniques in order to increase their chances of making a profitable transaction.Ĭalculating the Know Certainty Factor (KST) In addition to trading signals produced when the KST crosses above or below the signal line, traders are looking for overbought or oversold situations in the market.
This is a momentum oscillator that is often used in conjunction with rate-ofchange price data to understand price changes. Traders often use along with other analytical tools to predict market trends or valuation of assets.
Developed by Martin Pring, the Know Sure Thing (KST) is a momentum oscillator that simplifies the interpretation of rate-of-change data for traders.
