Feeling lost in the world of trading indicators? The Know Sure Thing (KST) could be the edge you need for smarter decisions in 2025’s fast-evolving financial landscape. From the ASX to global markets, understanding momentum is crucial—and the KST delivers a nuanced view that’s gaining traction with Australian traders and investors alike.
What is the Know Sure Thing (KST) Indicator?
The KST is a momentum oscillator developed by Martin Pring, designed to capture the “rate of change” (ROC) across multiple timeframes. Instead of focusing on a single period, KST blends four different ROCs, each smoothed by its own moving average, to produce a composite indicator. This layered approach helps reveal both short-term and long-term momentum shifts, aiming to filter out noise and false signals common in volatile markets.
- Formula: KST = ROC1(SMA1) + ROC2(SMA2) + ROC3(SMA3) + ROC4(SMA4)
- Oscillator Range: KST fluctuates above and below a centreline, similar to the MACD or RSI, but with a broader view.
- Signals: Crossovers (KST line vs. signal line) and centreline crosses are the primary trade signals.
In essence, the KST helps traders spot major turning points by highlighting when momentum is truly shifting—not just blipping due to short-term volatility.
Why KST Matters in 2025: Policy, Tech & Market Trends
This year, Australian investors are navigating a landscape shaped by continued interest rate volatility, evolving ASX technology, and a growing appetite for algorithmic trading. Here’s why the KST stands out in 2025:
- Market Volatility: With the RBA’s rate decisions in flux and global uncertainty (think: US election aftermath, China’s growth story), momentum indicators have become more vital than ever. KST’s multi-cycle view helps avoid whipsaws that single-period tools often trigger.
- Retail Trading Tech: Many ASX brokers—including SelfWealth and CommSec—now offer advanced charting tools, making KST accessible to everyday investors, not just pros.
- Algorithmic Adoption: Quant funds and retail platforms are integrating KST into automated strategies, thanks to its reliability in trend identification.
In 2025, ASX-listed ETFs and managed funds are increasingly referencing momentum indicators like KST in their portfolio updates, reflecting its growing legitimacy in institutional circles.
How to Use the KST: Practical Examples & Tips
Let’s make this real. Imagine you’re tracking CSL Limited (ASX: CSL) after a period of choppy trading. Here’s how you might apply the KST:
- Add the KST to Your Chart: Most major charting platforms (including TradingView and the latest updates to IRESS) now support KST.
- Watch for Crossover Signals: If the KST line crosses above its signal line, it’s a potential buy. A downward cross suggests a sell or short.
- Check Centreline Moves: When the KST crosses above zero, it often confirms an emerging uptrend. Below zero? Momentum may be shifting bearish.
- Combine with Volume or Support/Resistance: No indicator is perfect. Using KST alongside volume spikes or price support levels adds confidence to your signals.
Example (2025): After CSL’s earnings release, the KST crosses above its signal line and moves through the zero centreline—while trading volume surges. Many traders interpret this as a high-confidence buy, especially when supported by a positive macro outlook.
Pros, Cons & Common Pitfalls
- Pros: Smooths out noise; captures both short- and long-term shifts; widely available on Australian platforms.
- Cons: Can lag during rapid reversals; may generate false signals in sideways (range-bound) markets.
- Watch Out: Don’t use KST in isolation—always validate with price action and broader market context.
Conclusion
The Know Sure Thing is no longer a niche indicator—it’s a mainstream tool for navigating Australia’s dynamic markets in 2025. Whether you’re day trading lithium stocks or managing a long-term ETF portfolio, KST can help you distinguish real momentum from market noise.
