Know Sure Thing (KST)

Moneybestpal Team

Technical analyst and well-known author Martin Pring created the Know Sure Thing (KST), a technical indicator. In order to identify significant price trend changes in a security, this indicator smooths out short-term price volatility and concentrates on longer-term price trends.

In order to determine the KST, price data for a security are subjected to a series of moving averages. The weighted moving averages employed in the calculation give more importance to more recent price data than historical price data. The KST has a rate of change (ROC) indicator as well, which gauges the strength of the price trend.

The KST indicator is represented on a graph as an oscillating line that crosses a zero line. It is seen as a bullish indicator, indicating that the upward price trend is expected to continue, when the KST line crosses above the zero line. On the other hand, if the KST line crosses below the zero line, it is regarded as a negative indicator and suggests that the price trend is likely to continue falling.

Any security with a long enough trading history can have its price examined using the KST. It can be used to analyze long-term trends in stock prices as well as those in bonds, commodities, and currencies. It is particularly beneficial for doing so.

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