Master the KST (Know Sure Thing) Indicator: A Futures Trader's Guide to Momentum Mastery

Introduction to KST (Know Sure Thing)

The KST (Know Sure Thing) indicator helps you spot momentum shifts in futures markets, so you can make better decisions. It blends data from multiple timeframes, which lets you see trend strength and possible reversals in contracts like E-mini S&P 500 futures (ES) or gold futures (GC). This tool belongs to Tikitrade's Momentum category, where indicators help you read market trends and check breakouts.

KST differs from the MACD because it uses four rate of change (ROC) periods for a wider view, which suits futures with high volatility. You can pair KST with tools like the RSI (Relative Strength Index), so your strategies get stronger. Whether you are new to futures contracts or experienced, this indicator fits your needs. Ready to try it for your next soybean futures (ZS) trade? Let's explore more.

How KST (Know Sure Thing) Works

The KST (Know Sure Thing) measures momentum by using rate of change (ROC) across four periods, so it shows a clear picture of market speed. It acts as a momentum oscillator that moves around zero, with a signal line to spot crossovers. This setup helps in futures markets like Nasdaq 100 (NQ), where quick changes happen often.

KST stands out from the Momentum Oscillator because its multi-period design cuts down on delays, which works well during rollovers or news events. To understand the calculation, start with ROC for each timeframe, which finds the percentage change in price.

$\text{ROC}(n) = \left( \frac{\text{Close} - \text{Close}[n \text{ periods ago}]}{\text{Close}[n \text{ periods ago}]} \right) \times 100$

Next, smooth these with moving averages, like simple moving averages (SMA) by default.

$\text{ROCMA1} = \text{10-period SMA of 10-period ROC}$

$\text{ROCMA2} = \text{10-period SMA of 15-period ROC}$

$\text{ROCMA3} = \text{10-period SMA of 20-period ROC}$

$\text{ROCMA4} = \text{15-period SMA of 30-period ROC}$

Then, weight them and add up to get the KST line, which stresses longer periods for steady trends.

$\text{KST} = (\text{ROCMA1} \times 1) + (\text{ROCMA2} \times 2) + (\text{ROCMA3} \times 3) + (\text{ROCMA4} \times 4)$

Finish with a signal line, often a 9-period SMA of KST, to watch for crossovers.

$\text{Signal Line} = \text{9-period SMA of KST}$

In simple terms, KST averages price speed over short and long spans, so positive values mean upward push while negative ones show downward pull. Crossovers above zero suggest buying strength, but below zero point to selling pressure.

Chart: Example of KST line crossing signal on an NQ futures chart during a rally.

In futures, KST performs best in busy sessions. For instance, in NQ futures during a rise, an upward crossover confirms buying, which avoids wrong signals. Or in GC futures with data releases, a zero-line cross hints at a turn. Tikitrade lets you change MA types, like to exponential moving average (EMA), for faster reads—a feature that helps you adjust quickly on Tradovate.

Wondering how to use KST in your trading? It does well in trends, but add volume checks for safety.

Trading with KST (Know Sure Thing)

Risk Disclaimer: These trading setups are for educational purposes only and not investment advice. Past performance doesn't guarantee future results.

KST helps confirm trends and find divergences in futures, so you can plan your moves with care. Here are three strategies that mix KST with other Tikitrade tools. Always use stop-loss orders and proper sizing to handle risk, so start small until you see steady results.

Trend Confirmation Strategy

Setup: Look for KST above zero in an up market, paired with Supertrend for direction in ES futures during earnings time.

Entry: Buy when KST crosses above its signal and Supertrend turns green, on a close above recent highs.

Stop-Loss: Set it below the last swing low or Supertrend line, risking just 1% of your account.

Take-Profit: Exit at a 2:1 reward or when KST shows negative divergence.

KST helps here by checking momentum, which cuts false moves in active ES times.

Reversal Strategy

Setup: Check for KST divergences in steady CL futures, linked with Fair Value Gap (FVG) to find imbalances.

Entry: Sell short if price hits higher highs but KST lower ones, on a signal cross below zero near FVG.

Stop-Loss: Place above the recent high or FVG border.

Take-Profit: Aim for next support or 1.5:1 ratio, using a take-profit order.

This uses KST's skill at spotting weak momentum, which fits commodity turns—but back it with volume.

Scalping Strategy

Setup: On 5-minute ZN Treasury charts, watch KST crossovers with ATR (Average True Range) for volatility checks.

Entry: Buy on upward signal cross if ATR expands.

Stop-Loss: Keep it tight at 0.5x ATR below entry.

Take-Profit: Exit fast at 1x ATR or KST high.

KST works for quick trades, but stay in liquid hours. Try tools like RSI (Relative Strength Index) for overbought alerts. Results come from steady practice with risk rules.

Diagram: Key steps in a reversal setup with KST divergence on a CL chart.

Tikitrade’s KST (Know Sure Thing) Indicator

Try Tikitrade’s premium KST (Know Sure Thing) on Tradovate and NinjaTrader Web, where it offers color clouds for momentum areas and signals for crossovers. These features help you see changes fast, unlike basic free versions, so you save time in busy markets like GC futures.

You can change core settings with MA types, which makes it fit your style for tough conditions. We add updates based on user needs, like bar coloring that shows KST against zero for easy views.

Key settings you can change include:

rocPeriod1 (default 10) – Sets short ROC for fast reads, adjust for 1-min CL quick trades.
maType (default SMA) – Change to EMA for quicker response in rising NQ futures.
averagePeriod (default 9) – Sets signal length; make it short for bold alerts in ZS swings.
showCloud (default true) – Turns on up/down zones for better trend spotting.
paintBars (options: value vs prior, zero, off) – Colors bars for quick momentum checks in ES.

Screenshot: Tikitrade’s KST (Know Sure Thing) with clouds and signals on Tradovate for crude oil futures. Alt text: Tikitrade KST (Know Sure Thing) futures trading indicator on crude oil futures (CL) with momentum clouds.

In our Momentum group, it works well with MACD. Give it a go— it will help your futures trades.

Fun Facts About KST (Know Sure Thing)

The KST (Know Sure Thing) name comes from a fun twist in a finance newsletter, mixing "no sure thing" with strong signals. Martin Pring created it in the early 1990s to make ROC analysis simple for traders in futures. He aimed for a tool that gives clear momentum views, now common in index futures for its trust.

Visit his site at Pring Research for tips. He explains KST in Martin Pring on Market Momentum, which helps you learn more. Traders use it to catch cycles in commodities before others notice.

Conclusion

To wrap up, KST (Know Sure Thing) gives a strong view of momentum for futures, from trend checks to reversals in ES or CL. Tikitrade's version shines with clouds, alerts, and changes, only on Tradovate and NinjaTrader Web—offering the help we love to provide.

Always talk to a financial advisor for advice on futures. Sign up for Tikitrade today and improve your futures trading with our premium KST (Know Sure Thing) indicator!

Frequently Asked Questions

Can KST (Know Sure Thing) be used for day trading futures?
Yes, it fits intraday on 5-min charts for NQ futures, spotting fast momentum changes. Pair it with ATR (Average True Range) for volatility.

How does Tikitrade's KST (Know Sure Thing) differ from free versions?
Our premium has clouds, bar colors, and MA options—only on Tradovate, which saves you time in analysis.

What are optimal KST (Know Sure Thing) settings for futures?
Defaults like ROC 10/15/20/30 work fine, but shorten for scalps in GC or lengthen for swings in ZB.

Does KST (Know Sure Thing) work in ranging markets?
It spots divergences, but does best in trends. Add Bollinger Bands for ranges in ZS futures.

Is KST (Know Sure Thing) better than MACD for futures?
KST's multi-ROC gives wider insight; test both in Momentum.

How to get alerts with KST (Know Sure Thing) on NinjaTrader Web?
Tikitrade sets up crossover alerts for live pings in CL trades.

Embed: Tikitrade tutorial video on KST (Know Sure Thing) for futures trading. Caption: Learn KST strategies for ES futures with Tikitrade.

Related Indicators for Futures Trading

Pair KST (Know Sure Thing) with MACD for double momentum checks in NQ futures trades.
Use with Supertrend to sort trends in CL commodity moves.
Mix with RSI (Relative Strength Index) for overbought signals in GC gold futures.
Add ATR (Average True Range) for volatility stops in ES sessions.