Sidebar: Calculating the KST by Thom Hartle
The suggested parameters for short-, intermediate-, and long-term KST can be found in sidebar Figure 1. There are three steps to calculating the KST indicator. First, calculate the four different rates of change. The formula for rate of change (ROC) is today’s closing price divided by the closing price n days ago. This result is then multiplied by 100. Next, subtract 100 to obtain a rate of change index that uses zero as the center point. . .