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Key Features and Benefits of VT Trader™

Kurtosis Indicator

The Kurtosis Indicator is used to help determine market sentiment.

The Kurtosis Indicator is calculated in three parts.

The Kurtosis portion is calculated by the formula:

K = n-periods momentum – n-periods momentum of 1 bar ago (current bar’s momentum value minus the previous bar’s momentum value)

The Fast Kurtosis portion is calculated by the formula:

FK = n-periods moving average of K

The Fast/Slow Kurtosis portion is calculated by the formula:

FSK = n-periods moving average of FK

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Interpretation

A buy signal occurs when the Kurtosis indicator crosses above zero and a sell signal occurs when the Kurtosis indicator crosses below zero.

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