Know Sure Thing (KST)

Parameters: roc1_period = 10 (5–50) • roc2_period = 15 (10–75) • roc3_period = 20 (15–100) • roc4_period = 30 (20–150) • sma1_period = 10 (3–30) • sma2_period = 10 (3–30) • sma3_period = 10 (3–30) • sma4_period = 15 (5–40) • signal_period = 9 (3–30)

Overview

The Know Sure Thing (KST) is a sophisticated momentum oscillator developed by Martin Pring that addresses the limitations of single-timeframe momentum indicators. By combining four different rate-of-change (ROC) calculations, each smoothed and weighted according to their timeframe, KST provides a comprehensive view of market momentum across multiple time horizons. The indicator calculates ROC values for periods of 10, 15, 20, and 30, smooths each with moving averages, then combines them using weights of 1, 2, 3, and 4 respectively, giving more importance to longer-term momentum.

The indicator's name reflects its reliability in identifying significant trend changes, earning its reputation as a "sure thing" for major market turns. KST excels at filtering out short-term noise while remaining responsive to meaningful momentum shifts through its multi-timeframe approach. The weighting scheme ensures that longer-term trends dominate the signal, preventing whipsaws from short-term volatility. A 9-period signal line is added to generate crossover signals, similar to the MACD structure. KST is particularly effective for position traders and investors who need to identify major trend changes, and it works across all markets and timeframes from intraday to long-term investing.

Interpretation & Trading Signals

Signal Components:

  • KST Line: Weighted sum of four smoothed ROC calculations
  • Signal Line: 9-period SMA of the KST line
  • Zero Line: Centerline separating positive and negative momentum
  • Crossovers: KST crossing signal line generates trading signals

Trading Signals:

  • Bullish Crossover: KST crosses above signal line - buy signal
  • Bearish Crossover: KST crosses below signal line - sell signal
  • Zero Line Cross: Confirms trend direction changes
  • Divergences: Price vs KST divergences signal reversals

Market Analysis:

  • Trending Markets: KST above/below zero confirms trend
  • Turning Points: Signal line crosses identify major turns
  • Momentum Shifts: KST slope changes precede price moves
  • Cycle Analysis: Multiple timeframes capture market cycles

Example Usage

Code examples will be available once the Rust implementation is complete.

Performance Analysis

Related Indicators

Acceleration Oscillator

Technical analysis indicator

Awesome Oscillator

Technical analysis indicator

Absolute Price Oscillator

Technical analysis indicator

Commodity Channel Index

Technical analysis indicator

Center of Gravity

Technical analysis indicator

Chande Momentum Oscillator

Technical analysis indicator