Know Sure Thing with Alerts

The Know Sure Thing with Alerts indicator is a momentum oscillator designed to identify trend reversals and confirm price direction by combining four different timeframes of price velocity into a single composite value. This tool provides traders with a smoothed representation of momentum, making it easier to identify significant cyclical shifts in the market.

Usage

The Know Sure Thing (KST) is primarily used to identify trend changes through crossovers between the KST line and its signal line. When the KST line crosses above the signal line, it suggests a bullish momentum shift, often interpreted as a buy signal. Conversely, when the KST line crosses below the signal line, it indicates bearish momentum, suggesting a sell signal.

This version enhances the standard oscillator by adding:

• Visual Crossovers: The script plots "O" labels and "Enter" text directly on the oscillator whenever a crossover occurs.
• Zero Line Interaction: The relationship of the KST relative to the zero line helps determine the overall trend bias; positive values indicate bullish territory, while negative values indicate bearish territory.
• Integrated Alerts: Users can set alerts for both bullish (Buy) and bearish (Short) crossovers to stay informed of momentum shifts in real-time.

Details

The KST was originally developed by Martin Pring. It is calculated by taking the sum of four different Rate of Change (ROC) periods, each smoothed by a Simple Moving Average (SMA) and multiplied by a specific weight.

The weighted formula used in this implementation is:

• (ROC 10, SMA 10) * 1
• (ROC 15, SMA 10) * 2
• (ROC 20, SMA 10) * 3
• (ROC 30, SMA 15) * 4

By combining multiple timeframes, the KST aims to filter out noise while remaining responsive to significant trend changes that occur when different cycles align.

Settings

ROC Lengths

• ROC Length #1 - #4: These settings define the lookback periods for the four Rate of Change calculations used to measure price velocity across different timeframes.

SMA Lengths

• SMA Length #1 - #4: These settings control the smoothing applied to each individual ROC component before they are summed into the final KST value.

Signal Settings

• Signal Line Length: This defines the SMA period applied to the final KST line to create the signal line used for crossover detection.

FAQ

How do I use the Know Sure Thing with Alerts for entries?

Entries are typically signaled when the green KST line crosses the red signal line. A bullish crossover occurs when the KST rises above the signal, while a bearish crossunder occurs when it falls below.

What do the weights in the calculation mean?

The weights (1, 2, 3, and 4) emphasize the longer-term ROC periods. This ensures that while the indicator reacts to short-term changes, the primary trend (represented by the longest ROC) has the greatest influence on the indicator's direction.

How can I get access to this tool?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.