Know Sure Thing (KST)

The Know Sure Thing aka KST

Although the formulas are different, the Know Sure Thing (KST) is similar to that of the MACD. KTS was developed by Martin Pring to show the overall momentum of a financial instrument.

Indicator Description

You may use the Know Sure Thing indicator (KST) to identify trade signals, or to confirm trends. Long signals trigger when the KST cross above the zero line, or above the signal line. The inverse is true for sell signals. If the KST stays above zero during an uptrend, it confirms the trend. The inverse is true for a downtrend. You may also use the KTS indicator to locate price divergences. If prices are making new highs, whereas the KST is not, it indicates a slowing price momentum. The inverse is true for making new lows.

The Know Sure Thing indicator is best used when aligned with a higher timeframe trend / momentum bias. You may also increase the probability of successful trades by “buying support and selling resistance”. For additional information, please review the Daily Regression Channel, the Moving Average Wave, Tillson T3, and the Trigger Lines. You may also want to review our Indicator Spotlights on the Traders Dynamic Index, the Ichimoku Kinko Hyo, Daily Pivot Levels and Fibonacci Retracement Lines.

Other library momentum oscillators

Other than the KTS indicator, our standard momentum oscillators category feature a number of other entries, such as the Acceleration Deceleration, Double Smoothed Momentum, Slow RSI, Traders Dynamic Index, and improved versions of the standard RSI and Stochastics. We also have a category for advanced oscillators, with among others the Projection Oscillator and the SVE Stochastics ITF. These tools build on the same concept as the standard momentum oscillators, but with a higher degree of sophistication. In general, they allow for added value approaches, utilizing a set of more complex algorithms.

Our Indicator Spotlight has also reviewed various momentum indicators, such as the TDI indicator and the Ichimoku Kinko Hyo. Finally, in our Indicator Spotlight on the Z-score we discussed how to create a fixed scale for the Awesome Oscillator. Specifically, the post discussed how the Z-score can be used to create a fixed scale for an Awesome Oscillator strategy. The same can be achieved with the KST and is particularly useful if you want to create testable entry and exit conditions for trading systems.

The Know Sure Thing indicator is available for NinjaTrader 8.