Note that this indicator is highly laggy. Specific care must be taken when using it. The MACD-Signal crossing is quite delayed but it is a definite confirmation.
For earlier signs, the Histogram must be analyzed. A shift from Green-White signals the 1st Bear Signal. A MACD-Signal crossing signals the 2nd Bear SIgnal. The same applies for bull-signs.
This indicator is useful for long-term charts on which one might want to pinpoint clear, longterm divergences.
Standard RSI, Stochastic RSI and MACD are notoriously problematic when trying to pinpoint long-term divergences.
Finally, this indicator is not meant for pinpointing entry-exit positions. I find it useful for macro analysis. In my experience, the decreased sensitivity of this indicator can show very strong signs, that can be quite laggy.
Inside the indicator there is a setting for "exotic calculations". This is an attempt to make this chart work in both linear/negative charts (T10Y2Y) and log charts (SPX)
Tread lightly, for this is hallowed ground. -Father Grigori
Versionshinweise
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Minor code change.
Versionshinweise
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Added a ribbon, I love that stuff...
Versionshinweise
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Aesthetic changes.
Versionshinweise
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Updates in default values to make the indicator more responsive, while keeping it beautiful.
Versionshinweise
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Added copyright. I love that indicator.
Versionshinweise
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Now KST is calculated using EMA by default. This is done for increased sensitivity. You can always revert back to SMA.
I feel the need to make some simple explanations regarding how this indicator works. When in doubt, zoom out. Don't get feared of incoming oscillations. But take care, a bearish chart may not result in an outright crash. Tread lightly, for this is hallowed ground. -Father Grigori
P.S. There is still much room for improvement on how we read KST and make sense of it. I have made some attempts optimizing the default values for responsiveness and accuracy. Keep me updated of any changes you wish to make in this indicator, in order to make it even more accurate.
WeAreSat0shi
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Look at the gains it had while the MACD was going down.... Doesn't even make sense.