Kurtosis Analysis & Kurtosis Trading Signals
This stock indicator is used to help determine the sentiment of the stock market.
It is calculated in three parts.
- Kurtosis portion
- Fast Kurtosis
- Fast/Slow Kurtosis
Kurtosis portion is calculated using the formula:
K = n-periods momentum - n-periods momentum of 1 bar before (current stock trading price bar’s momentum value minus the previous stock trading price bar’s momentum value)
Fast Kurtosis portion is calculated using the formula:
FK = n-periods Moving Average of K
Fast/Slow Kurtosis portion is calculated using the formula:
FSK = n-periods MA of FK
Stock Analysis and How to Generate Signals
Bullish Signal - A buy signal gets generated when the indicator crosses above zero.
Bearish Signal - A sell stock signal gets generated when the indicator crosses below zero.
Analysis in Indices Trading
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