KnowSureThing Divergence Indicator

KnowSureThing  Divergence generation III is modern indicator with complex mathematic algorithm (BJF Trading Group innovation). You will see divergenses on the chart and indicator. Arrows painted above/below the open bar and not in the past. You can see when actually you can trade. It is never to late! Signals based on closed bars so the arrows above/below open bar never disappear.

KnowSureThing Divergence MT4 Indicator 

The KST Indicator often diverges positively and negatively with the price. Know SureThing Divergence indicates fractal divergence by Know Sure Thing indicator. When divergence appears between Know Sure Thing Indicator and the price, it indicates a high probability that the current trend will finish soon. A signal to buy is when a new Low-fractal is formed below the previous one and a corresponding Know Sure Thing  value is higher than the previous one. A signal to sell is when a new Up-fractal is formed above the previous one and a corresponding Know Sure Thing value is lower than the previous value. The indicator has a lot of customizable settings.

KnowSureThing Explanation

Know Sure Thing (KST) Oscillator is a complex, smoothed price velocity indicator developed by Martin J. Pring.
Rate of Change (ROC) indicator is the foundation of KST indicator. KST indicator is useful to identify major stock market cycle junctures because it formula is weighed to have larger influence by the longer and more dominant time span to better reflecting the primary swings of stock market cycle.[3]. The concept behind the oscillator is that price trends are determined by the interaction of many different time cycles and that important trend reversals take place when a number of price trends are simultaneously changing direction.

Four different rates of change are calculated, smoothed, multiplied by weights and then summed to form one indicator.[4]
ROC1 = (1 − Price / Price(X1)) * 100;
ROC2 = (1 − Price / Price(X2)) * 100;
ROC3 = (1 − Price / Price(X3)) * 100;
ROC4 = (1 − Price / Price(X4)) * 100;

Where Price refers to current closing price and Price(X1) refers to the closing price X1 bars ago.
KST = MOV(ROC1,AVG1) * W1 + MOV(ROC2,AVG2) * W2 + MOV(ROC3,AVG3) * W3 + MOV(ROC4,AVG4) * W4

Where MOV(ROC1,AVG1) refers to the AVG1 day moving average for ROC1

For Short term trend, Martin J Pring suggest the following parameters:
X1 = 10
X2 = 15
X3 = 20
X4 = 30
AVG1 = 10
AVG2 = 10
AVG3 = 10
AVG4 = 15
W1 = 1
W2 = 2
W3 = 3
W4 = 4