Know sure thing is a momentum crossover indicator. As a momentum crossover indicator, Know Sure Thing indicator was created by Martin Pring to help traders know the direction of the market as well as whether the market has experienced an overbought or oversold condition. Because of this ,it is considered to be based on divergence and oversold/overbought. Know sure thing is based on smoothed rate of change and is used to measure price momentum with 4 different time frame. As an oscillator indicator, Know Sure Thing has an oscillation at point 0. Since know sure thing is a crossover indicator, it therefore has two crossover lines,the blue line which represents the know sure thing(KST) and the red line which represents the signal line. Know sure thing is therefore calculated by following formula as below;
-Taking the simple moving average(SMA) or rate of change (ROC) of four different period as follows
ROCSMA1= 10 period SMA of 10 period ROC
ROCSMA2= 10 period SMA of 15 period ROC
ROCSMA3= 10 period SMA of 20 period ROC
ROCSMA4 = 10 period SMA of 30 period ROC
The four are then added together to give the know sure thing (KST) as follows;
KST= (ROCSMA1*1)+(ROCSMA2*1)+(ROCSMA3*1)+(ROCSMA4*1)
Since Know Sure Thing is an oscillator with oscillation at point 0 and is based on divergence(where when the market is moving downwards while the two lines are moving upwards,the market will reverse and start moving in the same direction upwards as the two lines and vice versa). Furthermore based on crossover for overbought and oversold in the market, the market can be explained as follows;
1. Know sure thing oversold cryptocurrency market
Therefore,based on crossover,there are two crossover lines,know sure thing(KST) which is blue in color and the signal line which is red in color.When the know sure thing(KST) line crosses above the signal line at below 0 oscillation point,that will be an indication of an oversold market at that point .This will signal the cryptocurrency trader to purchase a given amount of cryptocurrency with their USDT balance. The cryptocurrency trader can either place a market buy order which will be processed immediately or they can place a limit buy order which will be processed when the market reaches their buy limit order price. This is indicated as from below;
The above represents the TRX market against USDT. Three points are being indicated. There is point A, point B and point C. Point A represents know sure thing curve while point B represents the signal line curve. On the other hand, point C is the crossover point. At point C, the know sure thing indicator has crossed above the signal at below 0.000 thus an indication of an oversold point over there. This signals the cryptocurrency trader to purchase a given amount TRX with their USDT balance. The cryptocurrency trader can either decides to place a market buy order or a limit buy order. The market buy order will be processed immediately while the limit buy order will be processed when the market reaches their limit buy order. When the order is being placed,the account of the cryptocurrency trader will start increasing in value if the price is moving upwards.
2. Know sure thing overbought cryptocurrency market
Therefore,based on crossover,there are two crossover lines,know sure thing(KST) which is blue in color and the signal line which is red in color.When the know sure thing(KST) line crosses below the signal line at above 0 oscillation point,that will be an indication of an overbought market at that point .This will signal the cryptocurrency trader to sell a given amount of cryptocurrency which he had previously purchased and is currently holding to avoid declining the value of his trading account. The cryptocurrency trader can either place a market sell order which will be processed instantly or they can place a limit sell order which will be processed when the market reaches their sell limit order price. This is indicated as from below;
The above represents the TRX market against USDT. Three points are being indicated. There is point A, point B and point C. Point A represents know sure thing curve while point B represents the signal line curve. On the other hand, point C is the crossover point. At point C, the know sure thing indicator has crossed below the signal at above 0.000 thus an indication of an overbought point over there. This signals the cryptocurrency trader to sell a given amount of TRX. The trader can place a market sell order which will be processed immediately or they can place a limit sell order which will be processed when the market reaches their sell limit order price. When the order is being executed,the account of cryptocurrency trader will have increased in value in terms of USDT.