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Apply a Know Sure Thing (KST) Indicator

A two-line indicator used to determine momentum in stock trends. As an oscillator, it fluctuates above and below zero, providing trade signals and analytical insight based on divergence with price and KST and signal Line crossovers.

The indicator formula uses four different time frames to show overall momentum (rather than momentum over only one specific timeframe):

• ROCMA1 = 10-Period SMA of 10-Period Rate-of-Change
• ROCMA2 = 10-Period SMA of 15-Period Rate-of-Change
• ROCMA3 = 10-Period SMA of 20-Period Rate-of-Change
• ROCMA4 = 15-Period SMA of 30-Period Rate-of-Change
• KST Line = (RoCMA1 x 1) + (RoCMA2 x 2) + (RoCMA3 x 3) + (RoCMA4 x 4)
• Signal Line = 9-period SMA of KST, where SMA stands for Simple Moving Average and ROC stands for Rate-of-Change.

While the formulas are different, the applications of KST are similar to those of the MACD.

To apply a Know Sure Thing Indicator

1. From within a chart, from the Edit menu select Studies.
2. Choose Know Sure Thing and click Add to add the study to the Applied Studies group.
3. Complete parameters as necessary.

Once the study is defined, you can elect to uncheck/check to remove and add the study to your chart.

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