Kurtosis Indicator

Written by Miroslav Marinov

Miroslav Marinov

Miroslav Marinov, a financial news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Foreign Exchange Market, as currently his focus is set on the major currencies of eight developed nations worldwide.

, | Updated: October 30, 2024

This indicator is purposed to identify market sentiment. It is calculated in three portions:

– The Kurtosis portion is calculated as follows:

K = n-period momentum of the current bar – n-period momentum of the prior bar

– The Fast Kurtosis portion is calculated as follows:

FK = n-period moving average of K

– The Fast/Slow Kurtosis portion is calculated as follows:

FSK = n-period moving average of FK.

Trading signals are generated, when the Kurtosis indicator crosses its zero line. A signal to buy is generated, when the indicator crosses above the zero line. A signal to sell is generated, when the indicator crosses below the zero line.

Chart Source: VT Trader