KST — Know Sure Thing
The KST, developed by Martin Pring, is a multi-horizon momentum oscillator. Its distinctive feature: aggregating four Rate of Change (ROC) values calculated across different time windows to deliver a cumulative measure of momentum. Where the RSI captures short-term momentum and the MACD reads the difference between two moving averages, the KST seeks to answer a broader question: is the trend confirmed across all horizons at once?
Definition and formula
The KST combines 4 ROCs (10, 15, 20, 30 periods), each smoothed by a simple moving average, then summed with increasing weights:
RCMA2 = SMA(ROC(15), 10) × 2
RCMA3 = SMA(ROC(20), 10) × 3
RCMA4 = SMA(ROC(30), 15) × 4
KST = RCMA1 + RCMA2 + RCMA3 + RCMA4
Signal = SMA(KST, 9)
Longer ROCs receive more weight: the KST therefore favors underlying momentum over very short-term momentum. Values have no fixed range — the KST is read relative to zero (above = bullish, below = bearish) and relative to its signal-line (crossover).
How to read the KST
Level and crossover reading
- KST > 0 and rising — positive cumulative momentum across all horizons. Phase favorable to long strategies.
- KST < 0 and rising — exit from a negative phase, possible start of a bullish reversal. To be confirmed.
- KST > 0 and falling — positive momentum running out of steam. Watch for bearish divergences.
- KST < 0 and falling — negative cumulative momentum, sellers in control across all horizons. Phase to avoid for longs.
- KST crossing above its Signal-line (9 periods) — classic buy signal, equivalent to the MACD crossover but with more inertia.
- KST crossing below Signal-line — sell / profit-taking signal.
KST / price divergences
Like the RSI or MACD, the KST can diverge from price:
- Bullish divergence: price makes a lower low while the KST makes a higher low. Anticipatory signal of a rebound.
- Bearish divergence: price makes a higher high while the KST makes a lower high. Signal of momentum exhaustion, probable reversal.
- Signal strength is proportional to the time gap between the compared highs/lows.
How Cash Scanner uses the KST
The KST enters the /100 score through two signals:
- Bullish KST (`kst > kst_signal`) — score bonus when the KST crosses above its signal-line. Indicator of cumulative momentum favoring longs. Displayed as a badge on opportunities.
- Momentum Mode: a positive KST above its Signal-line strengthens the score when the RSI or MACD are also aligned. This is a multi-horizon consistency filter — the scanner prioritizes tickers whose momentum is confirmed across 10, 15, 20 and 30 days simultaneously, not just by an isolated RSI spike.
- Phoenix Mode: a KST exiting a negative zone is precisely the type of signal sought — end of capitulation, start of rebound. A KST rising from below zero is rewarded.
Limits and common pitfalls
- The KST lags price significantly — it aggregates smoothed ROCs, which produces a slow signal. Useless for scalping or intraday swing, optimal for weekly/monthly trend-following.
- Very period-sensitive: (10/15/20/30) is Pring's daily optimum. On weekly time-frames, multiply by 5. On M15, divide by 4. Not universal.
- No fixed bounds: unlike the RSI (0-100), the KST has no universal oversold / overbought level. Compare against the same asset's history.
- False crossovers in consolidation: on a ranging asset, the KST oscillates around zero and produces repeated crossovers without value. Filter with the ADX (> 20 to validate the trend) or volume.