In financial technical analysis, the know sure thing (KST) oscillator is a complex, smoothed price velocity indicator developed by Martin J. Pring.KSToscillatorFromWikipedia,thefreeencyclopediaJumptonavigationJumptosearchInfinancialtechnicalanalysis,theknowsurething(KST)oscillatorisacomplex,smoothedpricevelocityindicatordevelopedbyMartinJ.Pring.[1][2]Arateofchange(ROC)indicatoristhefoundationofKSTindicator.KSTindicatorisusefultoidentifymajorstockmarketcyclejuncturesbecauseitsformulaisweighedtobemoregreatlyinfluencedbythelongerandmoredominanttimespans,inordertobetterreflecttheprimaryswingsofstockmarketcycle.[3]Theconceptbehindtheoscillatoristhatpricetrendsaredeterminedbytheinteractionofmanydifferenttimecyclesandthatimportanttrendreversalstakeplacewhenanumberofpricetrendsaresimultaneouslychangingdirection.Contents1Formula2Implications2.1EntryrulesKSTIndicator2.2ExitrulesKSTindicator3Variations4KSTinterpretation4.1Directionalchangesandmovingaveragecrossovers4.2Overbought/oversoldanddivergences4.3Trendlineviolationsandpricepatterncompletions5Seealso6ReferencesFormula[edit]Fourdifferentratesofchangearecalculated,smoothed,multipliedbyweightsandthensummedtoformoneindicator.[4]ROC1=(Price/Price(X1)−1)∗100;{\displaystyleROC1=(Price/Price(X1)-1)*100;}ROC2=(Price/Price(X2)−1)∗100;{\displaystyleROC2=(Price/Price(X2)-1)*100;}ROC3=(Price/Price(X3)−1)∗100;{\displaystyleROC3=(Price/Price(X3)-1)*100;}ROC4=(Price/Price(X4)−1)∗100;{\displaystyleROC4=(Price/Price(X4)-1)*100;}http://search.cpan.org/~kmx/Finance-TA-v0.4.1/TA.pod#TA_ROC_(Rate_of_change_:_((price/prevPrice)-1)*100)Wherepricereferstocurrentclosingpriceandprice(X1)referstotheclosingpriceX1barsago.KST=MOV(ROC1,AVG1)∗W1+MOV(ROC2,AVG2)∗W2+MOV(ROC3,AVG3)∗W3+MOV(ROC4,AVG4)∗W4{\displaystyleKST=MOV(ROC1,AVG1)*W1+MOV(ROC2,AVG2)*W2+MOV(ROC3,AVG3)*W3+MOV(ROC4,AVG4)*W4}WhereMOV(ROC1,AVG1)referstotheAVG1daymovingaverageforROC1Forshort-termtrends,MartinJPringsuggeststhefollowingparameters:X1=10X2=15X3=20X4=30AVG1=10AVG2=10AVG3=10AVG4=15W