Kurtosis Technical Analysis & Kurtosis Signals

This technical indicator is used to help determine the sentiment of the stock market.

It is calculated in 3 parts.

• Kurtosis portion
• Fast Kurtosis
• Fast/Slow Kurtosis

The Kurtosis portion is calculated using the formula:

K = n-periods momentum - n-periods momentum of 1 bar before (current stock price bar’s momentum value minus the previous stock price bar’s momentum value)

The 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 moving average of FK

Technical Analysis & Generating Signals

Bullish Signal - A buy signal is generated when indicator crosses above zero.

Bearish Signal - A sell signal is generated when indicator crosses below the zero.

Analysis in Indices Trading