What is this indicator?
A weighted combination of several rate-of-change (ROC) readings over different time periods, used to identify medium-term market cycles. A KST crossover with its signal line is read as a trend-change signal, similar to MACD.
How to read the chart
The indicator moving toward the ends of its range usually signals overbought or oversold conditions; a divergence between price and the indicator is also considered an important signal.
Practical tip
Instead of trading purely off reaching an overbought or oversold zone, first check the overall trend on a higher timeframe and only take signals that align with it.