The Pring Special K indicator is a momentum indicator which is created by Martin Pring. This indicator is combining multiple time frame, i.e, short-term, intermediate as well as long-term velocity into 1 complete series. Thus it gives us true summed cyclicality. There are two functions of Pring Special K indicator, first to identify primary trend reversals at a relatively early stage, and second to use that information for timing short-term pro-trend price moves.
In the Zerodha Kite platform, traders can find the Pring’s Special K indicator under the STUDIES section. This 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. The default INTERVAL is daily and we can set it weekly and daily. Please check the image below to understand how we attached the Pring’s Special K indicator in Reliance share price chart.
About Martin J. Pring :
In 1981 Martin J. Pring founded Pring Research and began providing research for financial institutions and individual investors around the world. In 1984, Martin J. Pring has published a monthly market letter offering a long-term synopsis of the world’s major financial markets which is called the “Intermarket Review”. He is the author of several outstanding books including, the classic Technical Analysis Explained, now in its fourth edition and eighth language. This is used by international technical societies and many universities for training. Also, it is one of the two main books for Levels 1 and 2 CMT certification for the Market Technicians Association. It has become the text on which other works in the field have been based.
The Pring Special K Indicator is ought to peak and trough more or less simultaneously with the price at bull and bear market turning points. In most situations that actually happens. When it does, the trick is being able to identify these turning points as quickly as possible after the fact. The formula of this indicator assumes that prices are revolving around the four-year business cycle. When a linear uptrend, such as the 1990’s secular bull market in equities develops, then the result is the Special K leads turning points. Also, when the cycle is truncated, as was the case for the 1987 crash, the indicator is late. This Pring Special K indicator also includes short-term data in its calculation a subsidiary benefit lies in the identification of smaller trends. For trading purposes, and putting that indicator in context with the direction and maturity of the primary trend.