Asset Classes

Free investment financial education

Language

Multilingual content from IBKR

Close Navigation
Learn more about IBKR accounts

Know Sure Thing (KST)

Trading Term

A two-line indicator used to determine momentum in stock trends. As an oscillator, it fluctuates above and below zero, providing trade signals and analytical insight based on divergence with price and KST and signal Line crossovers. The indicator formula uses four different time frames to show overall momentum (rather than momentum over only one specific timeframe):

  • ROCMA1 = 10-Period SMA of 10-Period Rate-of-Change
  • ROCMA2 = 10-Period SMA of 15-Period Rate-of-Change
  • ROCMA3 = 10-Period SMA of 20-Period Rate-of-Change
  • ROCMA4 = 15-Period SMA of 30-Period Rate-of-Change
  • KST Line = (RoCMA1 x 1) + (RoCMA2 x 2) + (RoCMA3 x 3) + (RoCMA4 x 4)
  • Signal Line = 9-period SMA of KST, where SMA stands for Simple Moving Average and ROC stands for Rate of Change.

While the formulas are different, the application of KST are similar to those of the MACD.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.