Basic Trade Theory

 Hello everyone due to work load I am here with Basic Trade Theory using charts and KST (Know Sure Thing) I used this when I was new to KST may this help you. Just watch the movement which helps you to trade using KST many people said KST is well used for long period but from last few months I found this theory good for intraday and all of you want to know how it works. But This BASIC THEORY NEEDS PAPER TRADING so I suggest to Trade on Paper (Paper Trade)

now look at Image  
A. KST indicator is in the overbought area but the indicator crossed and is going down, this means that the downward momentum is gaining strength sell is indicated
B. Distance between indicator suggesting no near term possibilities of positive change.
 

C. Indicators reached Oversold Zone, right time for profit booking
D. Indicators staying in Oversold Zone,Positive cross happens now and time for going long 
E. Indicators trying another cross and cross is at 0 line and due to gap and 0 line volatility expected in this case try to book profit. wait for next sign. 

Simple Rules to follow Know Sure Thing ( KST ) as a Beginner

Rules for Longs
BUY at cross which happens at higher sold zone and SELL (book profit) at another cross which happens at higher bought zone


Rules for Shorts

SELL at cross which happens at higher bought zone and BUY (book profit) at another cross which happens at higher sold zone.