What is the role of the KST (Know Sure Thing) divergence in technical analysis?

In the world of technical analysis, traders employ a variety of indicators to help them make informed decisions in the stock market. One such indicator is the KST (Know Sure Thing). The KST is a momentum oscillator that combines several moving averages to identify potential trend reversals and provide buy and sell signals.

In this blog post, we will explore the role of KST divergence in technical analysis and how it can be used to enhance trading strategies.


Understanding the KST Indicator


The KST indicator was developed by Martin Pring, a renowned technical analyst. It aims to identify major market trends and turning points by combining four different smoothed rate-of-change (ROC) indicators. These ROC indicators are calculated using various moving averages, each with a different time frame.

The KST indicator is designed to smooth out noise and focus on longer-term trends. It provides a visual representation of the rate of change in price momentum, allowing traders to identify potential reversals and generate trading signals.

Role of KST Divergence in Technical Analysis

KST divergence refers to a situation where the KST indicator diverges from the price action of the underlying security. This divergence can provide valuable insights into potential trend reversals and signal possible trading opportunities.

1. Bullish KST Divergence

Bullish KST divergence occurs when the price of an asset forms lower lows while the KST indicator forms higher lows. This indicates that the price is losing downward momentum while the indicator suggests a potential reversal and building upward momentum. Traders often interpret this as a bullish signal, signaling a possible buying opportunity.

2. Bearish KST Divergence

On the other hand, bearish KST divergence occurs when the price of an asset forms higher highs while the KST indicator forms lower highs. This suggests that the price is losing upward momentum while the indicator indicates a potential reversal and building downward momentum. Traders often interpret this as a bearish signal, indicating a possible selling opportunity.

3. Confirmation of Trend Reversals

KST divergence can be a powerful tool in confirming potential trend reversals identified by other technical indicators or chart patterns. When other indicators or patterns signal a possible reversal, observing KST divergence can provide additional confirmation and increase the trader’s confidence in their trading decision.

4. Enhancing Trading Strategies

Traders can incorporate KST divergence into their trading strategies to enhance their overall performance. By combining KST divergence signals with other technical indicators, such as moving averages or oscillators, traders can develop a more comprehensive and robust trading strategy.




The KST divergence plays a significant role in technical analysis by providing insights into potential trend reversals and confirming trading signals. By understanding how to identify and interpret KST divergence, traders can improve their ability to make informed trading decisions in the stock market.


If you’re interested in learning more about stock market analysis or seeking professional guidance, we offer comprehensive stock market classes and personalized support at Astrobulls Research Pvt Ltd. Click the buttons below to send an inquiry or contact us via WhatsApp if you’re interested in our stock market courses:











By Astrobulls Research Pvt Ltd

Leave a Comment

Your email address will not be published. Required fields are marked *