# Know Sure Thing (KST) Trading Strategy

## What is Know Sure Thing (KST)?

Developed by Martin Pring, Know Sure Thing (KST) is a momentum oscillator based on the smoothed rate of change for four different timeframes. Pring referred to this indicator as to the “Summed Rate of Change (KST)” in a 1992 article in Stocks & Commodities magazine. In short, KST measures price momentum for four different price cycles. It can be used just like any momentum oscillator. KST fluctuates above/below the zero line. At its most basic, momentum favours the bulls when KST is positive and the bears when KST is negative.

## KST Indicator

The KST Indicator is momentum oscillators that are intended to interpret rate-of-change price data. To use the indicator efficiently, one can combine it with other technical indicators. This maximises the odds of a successful trade.

## How to calculate the KST Indicator

Formula:- RCMA1 = 10-Period SMA of 10-Period Rate-of-Change

RCMA2 = 10-Period SMA of 15-Period Rate-of-Change

RCMA3 = 10-Period SMA of 20-Period Rate-of-Change

RCMA4 = 15-Period SMA of 30-Period Rate-of-Change

KST = (RCMA1 x 1) + (RCMA2 x 2) + (RCMA3 x 3) + (RCMA4 x 4)

## Why Use The KST Indicator

The Know Sure Thing indicator can be used in the same manner as many other momentum oscillators, such as the well-known relative strength index (RSI). Many traders combine the KST indicator with other forms of technical analysis to maximize their odds of success.

## How to Use The KST Indicator

Bullish Scenario:- Since KST is an oscillator means that if it goes above 0 and stays there, that generally indicates an upward trend i.e. a bullish scenario

Bearish Scenario:- Similarly if it goes below 0 and stays there, that generally indicates a downward trend i.e. a bearish scenario.

## Strategy:-

SELL:- KST crosses down 0

TIME FRAME:- 2Hrs

Creating on Mudrex:-

We will use 2 BOP indicator blocks. One for selling and One for buying.

For buying we will use the following settings:-

For selling we will use the following settings:-

Final Strategy:-

Testing:-

Running backtest on Binance Futures: BTC/USDT with tick interval of 2H yielded an overall profit of 225.66%

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