KST STRATEGY (MEDIUM TO LONG TERM)

Date: 20/10/2004
Name: N.D.Salil
Subject : KST with a 13 week EMA
Depatme!t : Supp"t # Mateial c"llecte$ b% Ke$a&
Strategey Name : KST ST'ATE() with 13 week EMA.
Chart Perio: *eekl%.
Parameter!: KST #10+20+30+40+E ,&
A"a#y!i!: -" Me$ium t" ."!/ Tem. i.e 3 0 4 m"!th pei"$ a!$ ab"1e.
KST 2ta!$2 3" $K"o% S&re Thi"g'( 4t i2 a c"mbi!ati"! "3 3"u '5672 #'ate "3
6ha!/e&. Thi2 2tate/e% will /i1e a clea pictue whethe a 2cip i2 bulli2h " beai2h a!$
t" h"l$ "! it " !"t. A 138week EMA ca! al2" be pl"tte$ 2" a2 t" l""k 3" e9it 2i/!al2 " t"
3i!$ the 2upp"t 3" pice.
KST u2uall% m"1e2 ab"1e " bel"w the :e" li!e. At a!% p"i!t "3 time the 1alue
3" KST i2 eithe p"2iti1e " !e/ati1e. *he!e1e the 1alue "3 KST bec"me2 p"2iti1e i.e. it
cut2 the :e" li!e upwa$2+ the 2cip will be i! the bulli2h :"!e 3" the c"mi!/ week2 "
m"!th2. A pice cl"2e ab"1e the 138week EMA ca! al2" be u2e$ t" c"!3im thi2 m"1e.
Al"!/ with the KST i2 the a1ea/e "3 the KST. The KST A1/ m"1e2 ju2t a2 the
KST but /i1e2 a late but a 2m""the c"!3imi!/ 2i/!al ab"ut the KST72 m"1e. T" e$uce
i2k the KST a1/ ca! be u2e$ 3" the bu% " 2ell 2i/!al.
43 the pice m"1e2 bel"w the 13 week EMA a!$ at the 2ame time the KST i2 al2"
bel"w it2 a1ea/e li!e "!e ca! b""k 2"me p"3it2.
03:F M A M J J A S O N D 04:J F M A M J J A S O
Log
100
120
140
160
180
Lk
2.00
4.00
6.00
25.00
50.00
Price Avg(E13!
"o#
$S%(10203040E&!
'ASF (ND(A )'500042* 142.50 14&.&0 142.00 144.65 133813 2.44+
,k#
D 0
51-&35.34
25. 06. 04 Fri
O/ 114.&5
0i 11&.80
Lo 114.00
1# 115.&0
Av 121.&1
23 0.38
$S 416.04
$S 414.21
The ab"1e 3i/ue i2 weekl% chat "3 ;AS- 4!$ia. -" the week 23/0</03 the KST m"1e$
i! the p"2iti1e :"!e. The pice the! /a1e a cl"2e ab"1e the a1ea/e. Thi2 wa2 the 2tat
"3 the ;ulli2h m"1e 3" thi2 paticula 2cip. .ate the a1ea/e li!e "3 KST /a1e the
c"!3imati"!. A2 me!ti"!e$ ealie it ca! be al2" 2ee! that the pice i2 taki!/ 2upp"t "3
the 13 week EMA.
-i!all% the pice c"22e2 bel"w the 13 week EMA 3" the week e!$e$
23/01/04. E1e! the KST ha2 c"22e$ bel"w it72 a1ea/e at thi2 p"i!t "3 time. Thi2 wa2
the time 3" p"3it b""ki!/. 4! 3act a3te thi2 3all the pice tie$ t" m"1e back but !e/ati1e
1alue "3 KST $"e2 !"t 2upp"t thi2. The pice al2" take2 2t"!/ e2i2ta!ce at the 13
week EMA.