KST oscillator

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In technical analysis, know the exact thing (KST) oscillator is a complicated and refined price velocity indicator developed by Martin J. Pring.

The rate of change indicator (ROC) is the foundation of the KST indicator. The KST indicator is useful for identifying key stock market cycle points because the formula is weighed to be more influenced by longer and more dominant timeframes, to better reflect major changes in the stock market cycle. The concept behind the oscillator is that price trends are determined by the interaction of many different time cycles and an important trend reversal occurs when a number of price trends simultaneously change direction.

Video KST oscillator

Formula

Empat tingkat perubahan yang berbeda dihitung, dihaluskan, dikalikan dengan bobot dan kemudian dijumlahkan untuk membentuk satu indikator.

${\ displaystyle ROC1 = (Upload/Harga (X1) -1) * 100;} Â Â$

${\ displaystyle ROC2 = (Harga/Harga (X2) -1) * 100;} Â Â$

${\ displaystyle ROC3 = (Harga/Harga (X3) -1) * 100;} Â Â$

${\ displaystyle ROC4 = (Harga/Harga (X4) -1) * 100;} Â Â$

http://search.cpan.org/~kmx/Finance-TA-v0.4.1/TA.pod#TA_ROC_(Rate_of_change_:_((price/prevPrice) -1)*100)

Dimana makes Mengacu to do it penutupan saat ini dan harga (X1) Mengacu to the bar harga penutupan X1 Agustus

                   K         S         T         =         M         O         V        (         R         O         C         1                A         V         G         1        )         *         W         1                M         O         V        (         R         O         C         2                A         V         G         2        )         *         W         2                M         O         V        (         R         O         C         3                A         V         G         3        )         *         W         3                M         O         V        (         R         O         C         4                A         V         G         4        )         *         W         4             {\ displaystyle KST = MOV (ROC1, AVG1) * W1 MOV (ROC2, AVG2) * W2 MOV (ROC3, AVG3) * W3 MOV (ROC4, AVG4 ) * W4}  Â

Where MOV (ROC1, AVG1) refers to the AVG1 day moving average for ROC1

Untuk tren jangka pendek, Martin J Pring menyarankan parameter berikut:

X1 = 10

X2 = 15

X3 = 20

X4 = 30

AVG1 = 10

AVG2 = 10

AVG3 = 10

AVG4 = 15

W1 = 1

W2 = 2

W3 = 3

W4 = 4

This formula is built into, or can be incorporated into, various technical analysis software packages such as MetaStock or OmniTrader.

Maps KST oscillator

Implications

Entry rules KST indicator

When KST traverse below the 9-day exponential average, short at the opening price of the next day.

Exit from KST indicator rule

When KST crosses above the 9-day exponential average, close short positions at the opening price of the next day.

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Variations

This can be calculated based on daily or long term .

The dominant timeframe in construction (KST) is a 24-month period, which is half of the 4-year business cycle. This means that KST will work best when the security is experiencing a primary up and down trend based on the business cycle.

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KST interpretation

KST may be interpreted in the ways mentioned below.

The dominant timeframe in Know Sure Thing (KST) construction is a 24-month period, which is half of the 4-year business cycle. This means that Know Sure Thing (KST) will work best when the security is experiencing major ups and downs based on the business cycle.

Moving direction change and moving average

You've found out how the change of direction is the way the KST triggers the signal, but also that moving average moves offer less timely signals, but are more reliable. The average to use is a simple 10-day moving average. It is possible to anticipate a moving average crossover if the KST has changed and the price is breaching the trend line. KST starts to turn to the downside before a rising trendline is violated. Since either a reversal or a trading range follows a valid trendline offense, it's clear that upside momentum has been lost for a while, causing KST to cross below the moving average.

Traditionally, MACD gives buy and sell signals when traversing above and below the exponential moving average, known as "signal line". This approach is not perfect; The ellipse on the chart highlights all the hoaxes. As said earlier, KST can also provide false or misleading signals, as you can see from the signals bought in April 2005. Appears close to some tricks, but generally, it's more accurate, though MACD often changes faster than KST.

Overbought/oversold and divergence

The concept is that when the indicator crosses above and below the overbought/oversold zone, buy momentum and sell signal are triggered. Even so, you have to wait for some kind of trend reversal signal in the price, such as price fixing, trendline violations, or something similar.

KST often deviates positively and negatively with price.

Trendline violation and price pattern settlement

It is possible to build a trendline on KST and see when it has been violated, but not very often. When doing so, it usually produces a strong signal.

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See also

• AdvisorShares

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References

Source of the article : Wikipedia