The KST can be constructed for any time frame, from intraday to primary .
The KST is calculated from the smoothed ROC of four time spans , each of which is weighted according to the length of time.
Long-Term ,Short-term and intermediate KST’s can be combined on one chart to reflect the Market Cycle Model.
The KST lends itself to numerous momentum-interpretive techniques and can successfully be applied to relative strength analysis.
The +DI and _DI means postive and negative short-term direction.
When the raw or smoothed Dis cross, they trigger buy and sell momentum signals.
The ADX measures the directional movment of a trend.
A rising ADX indicates an increase in directional movment and vice versa.
Qwhen the ADX reverses direction from a high reading, the prevailing trend is likely to change.
The parabolic is a stop-loss system.
The parabolic was orginallydesigned as a stop and reversal method.It is better used as an exit mechanism due to the large risk oftern associated with the initation of a position based on an initial parabolic stop.
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