Advanced Tools Plug-in:

KST - Know Sure Thing Indicator

The Know Sure Thing (KST) Indicator, Developed by Martin J. Pring, gives bullish and bearish momentum signals and is an oscillator. The difference between this indicator and other oscillators is that it takes into consideration four time periods instead of only one.

Each time period is smoothed using a moving average. Also, each time period is weighted differently depending on length, so a longer time period would have greater weight. Because of the consideration of the various time periods, the KST is able to react quicker to price moves.

The Gator was created on a relative scale, so what seems to be a large move in the market today may well be just a small move on the historical scale, since the Gator graphically represents itself only against its own historical price line. As the market trends, the Gator will also trend, causing historical representations of market momentum and movement to pale in comparison.

To read the KST indicator, watch for bullish and bearish momentum signals. When the KST turns upward, this is a bullish signal; on the other hand when the KST turns down this is a bearish signal. Even more confirmation is given when the trigger line crosses the KST line as a result of the change in direction.

There are two lines, the “Trigger Line” and the KST line. The KST line is a result of the four moving averages smoothed as well as the Rate of Change or ROC. The trigger line is a moving average of the KST.

Buy/Sell Signals

A Buy Signal happens when: Today’s KST value is greater than today’s trigger AND yesterday's KST value is less than or equal to yesterday's trigger AND today’s KST is less then Zero.

A Sell Signal happens when: KST value today is less than today’s trigger AND yesterday's KST value is greater than or equal to yesterday's trigger AND today’s KST is greater then Zero.