Know Sure Thing Indicator (KST) is a momentum oscillator based on the smoothed rate-of-change for four different time frames. It was developed by Martin Pring, the author of Complete Guide to Technical Analysis An Indian Perspective. Pring referred to this indicator as the “Summed Rate of Change (KST)”. KST measures price momentum for four different price cycles. The KST indicator can be used just like any momentum oscillator.
Pring frequently applied trend lines to KST. In Know Sure Thing indicator, the trend line signals do not occur often, that such breaks reinforce signal line crossovers which are noted by Pring. Know Sure Thing is generally rising when above its signal line and falling when below its signal line. A rising and negative Know Sure Thing (KST) line indicates that downside momentum is in warning. Similarly, a falling and positive KST line indicates that upside momentum is fading.
Usage of the Know Sure Thing Indicator (KST):
The Know Sure Thing (KST) indicator is available for traders under the STUDIES section in the Zerodha Kite browser app. The KST indicator is also available in the Kite mobile App. The default field is close and we can set the field open, high, low or close etc. The Lightest rate of Change is 10 and Heaviest rate of Change is 30. The Lightest SMA Period and Heavy SMA Period is 10 bu default. The Signal Period is 9 and we can also change the parameters of the SMA in the different time frame. Please check the image below to understand how we attached the KST indicator in HDFC Bank share price chart. You can attach the KST indicator on to any charts likes daily, weekly, monthly or intraday.
In KST indicator many different signals possible. The basic center line and signal line crossovers are usually the most robust. Know Sure Thing Indicator (KST) does not have upper or lower limits which is makes it relatively ill-suited for overbought and oversold signals. Pring is the first to admit that KST indicator is not a perfect indicator. There is no such thing. KST has its uses and Pring encourages chartists to try different settings because one size does not fit all. In this Know Sure Thing, utility and consumer staples are less volatile and may require more sensitive settings. Technology stocks are more volatile and may require less sensitive settings of this indicator.
Conclusion on KST Indicator:
KST is also a momentum oscillator which is based on the smoothed rate of change over 4 separate time frames. This KST indicator is designed to capture four different price cycles. This indicator can be used like other unbound momentum oscillators, such as the MACD, the Percent Price Oscillator, and TRIX which is closely resembled by KST. This Know Sure Thing indicator is not well suited for identifying overbought and oversold conditions as it is unbound. Martin Pring, the creator, favored signal line crossovers and trendline breaks for signals. In all indicators, KST should be used in combination with other technical analysis techniques.