KST

12 May 2016 By PDSNET

Indicator developed by Martin Pring. A weighted summed rate of change oscillator. Four different rates of change are calculated, smoothed, multiplied by weights and then summed to form one indicator. Price is determined by the interaction of a number of different time cycles at any given point in time. A momentum indicator that is constructed from only one time span, such as a 14-day relative strength index (RSI) or a 10-day rate of change (ROC) then will only reflect the cycles that are close to the defined parameter. The KST indicator was intentionally created using several time cycles that build a broader visual picture of the market. By including moving averages in the formula, you get an oscillator that is smooth, does not turn prematurely, and reflects the underlying cyclical waves.



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