Kurtosis Indices Analysis & Kurtosis Trading Signals

This stock indices indicator is used to help determine the sentiment of the stock indices 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 indices trading price bar’s momentum value minus the previous stock indices trading 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

Stock Indices Analysis & How to Generate Trading Signals

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

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

Analysis in Indices Trading