Momentum

Know Sure Thing

KST

Sums four smoothed rates of change with increasing weights (1, 2, 3, 4) to produce a broad momentum oscillator. A signal line (SMA of KST) is plotted alongside. KST signal crossovers and zero-line crosses are used as trade triggers.

Tips

KST crossing above its signal line while both are below zero is a high-confidence bullish setup; the reverse applies for shorts

The default periods are designed for daily data; shorten all four ROC periods proportionally for intraday or weekly charts

Parameters

ROC 1

2 - 50

ROC 2

2 - 50

ROC 3

2 - 100

ROC 4

2 - 100

Signal

2 - 30