Kurtosis Commodities Technical Analysis and Kurtosis Trading Signals
This commodity indicator is used to help determine the sentiment of the commodities trading market.
It is calculated in 3 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 commodities price bar's momentum value minus the previous commodities price bar's momentum value)
Fast Kurtosis portion is calculated using the formula:
FK = n-periods moving average of K
The Fast/Slow Kurtosis portion is calculated using the formula:
FSK = n-periods moving average of FK
Commodity Technical Analysis & How to Generate Trading Signals
Bullish Signal - A buy commodity signal is generated when the indicator crosses above zero.
Bearish Signal - A sell commodity signal is generated when the indicator crosses below zero.
Technical Analysis in Commodity Trading