KST: Know Sure Thing

In TTR: Technical Trading Rules

Description

The Know Sure Thing (KST) is a smooth, summed, rate of change indicator. Developed by Martin Pring.

Usage

  KST(price, n = c(10, 10, 10, 15),
    nROC = c(10, 15, 20, 30), nSig = 9, maType,
    wts = 1:NROW(n), ...)

Arguments

price	Price series that is coercible to xts or matrix.
n	A vector of the number of periods to use in the MA calculations.
nROC	A vector of the number of periods to use in the ROC calculations.
nSig	The number of periods to use for the KST signal line.
maType	Either: A function or a string naming the function to be called. A list with the first component like (1) above, and additional parameters specified as named components. See Examples.
wts	A vector the same length as n, of the weight for each period (need not sum to one).
...	Other arguments to be passed to the maType function in case (1) above.

Details

For each day (week, month, etc.), the KST calculates the ROC over several periods. Those ROCs are smoothed using the given moving averages, then multiplied by their respective weighting values. The resulting values are summed for each day (month, week, etc.).

Value

A object of the same class as price or a vector (if try.xts fails) containing the Know Sure Thing values.

Note

The KST indicates bullish/bearish momentum as it crosses above/below its moving average. Because the KST tends to lead price action, look for trend confirmation in the price.

The default arguments are for the daily KST. There is also the Long-Term KST, with arguments: n=c(9, 12, 18, 24) - where the periods are months, not days - and the moving average periods are 6, 6, 6, and 9 months, respectively.

Author(s)

Joshua Ulrich

References

The following site(s) were used to code/document this indicator:
http://www.pring.com/index.html
http://www.pring.com/movieweb/daily_kst.htm
http://www.pring.com/articles/article28.htm
http://www.pring.com/movieweb/KST_MCM.htm

See Also

See EMA, SMA, etc. for moving average options; and note Warning section. See ROC for the rate-of-change function. See MACD for a generic oscillator.

Examples

data(ttrc)
kst <- KST(ttrc[,"Close"])

kst4MA <- KST(ttrc[,"Close"],
  maType=list(list(SMA),list(EMA),list(DEMA),list(WMA)))

Example output

TTR documentation built on April 15, 2017, 8:31 a.m.