No. of Recommendations: 6
"RSI is a long-term indicator. It works well for what it was designed for, but for the purposes of identifying short-term transitions in volatile stocks it is useless."
Since the subject has come up.
Recently added Know Sure Thing (KST) to a three month Daily chart for Trading signals and wanted to share. It seems to me that it works better than RSI when confirmed with the usual SMA crossovers.
What Is the Know Sure Thing (KST)?
The Know Sure Thing (KST) is a momentum oscillator developed by Martin Pring to make rate-of-change readings easier for traders to interpret.
KEY TAKEAWAYS
The Know Sure Thing (KST) is a momentum oscillator intended to interpret rate-of-change price data.
Trading signals are generated when the KST crosses over the signal line, but traders also look for overbought or oversold conditions.
Traders also combine the KST with other technical analysis to maximize their odds of a successful trade.
Calculating the Know Sure Thing (KST)
The KST is calculated by taking the simple moving average (SMA) of four different rate-of-change (ROC) periods, adding them together to come up with the KST, and creating a signal line by taking the 9-period SMA of the KST.
The KST is calculated with the following equation:
Finally, the signal line is calculated by taking the 9-period SMA of the KST value.
KST=(RCMA #1×1)+(RCMA #2×2) +(RCMA #3×3)+(RCMA #4×4)
where:
RCMA #1=10-period SMA of 10-period ROC,
RCMA #2=10-period SMA of 15-period ROC,
RCMA #3=10-period SMA of 20-period ROC,
RCMA #4=15-period SMA of 30-period ROC
GD_
No. of Recommendations: 1
RSI is a good short term indicator. Especially short ones like 2 days or 4.
