For traders who prefer simple trading strategies, the KST oscillator should be considered for evaluating:
Breakout trading signals. Assessing the strength of a trend. How to use the Know Sure Thing zero line to spot bullish and bearish momentum signals:
A buy signal is triggered when the Know Sure Thing crosses above the zero line. If the KST moving averages hold above the zero line, a bullish trend is confirmed. A sell signal is triggered when the Know Sure Thing crosses below the zero line. If the KST moving averages hold below the zero line, a bearish trend is confirmed.
Breakouts are usually the primary source for generating momentum bursts. The natural law of price behavior shows that stocks, futures, Forex currencies, commodities and cryptocurrencies move in short-term momentum bursts. Price tends to move back and forth from equilibrium (consolidation) to disequilibrium (expansion).