Kurtosis Indicator

The Kurtosis is a market sentiment indicator. The MetaStock formula for the Kurtosis is as follows:

Mov(Mov(Mo(3)-Ref(Mo(3),-1),66,E),3,S)

The Kurtosis is constructed from three different parts. The Kurtosis, the Fast Kurtosis(FK), and the Fast/Slow Kurtosis(FSK).

The Kurtosis(K) portion of this calculation is mo(3)-ref(mo(3),-1). Which is today's Kurtosis - yesterday's Kurtosis.

The Fast Kurtosis(FK) is mov(K,66,E) mov(mo(3)-ref(mo(3),-1,66,E). Which is the Kurtosis smoothed with a 66 period exponential moving average.

The Fast/Slow Kurtosis(FSK) is the complete formula mov(mov(mo(3)-ref(mo(3),-1),66,E),3,S). Which is the FK smoothed with 3 period simple moving average.

**You may want to experiment with different time periods to optimize the results. For example, to calculate a 4 period Kurtosis, a 50 period FK and a 10 period FSK, use the following formula:

mov(mov(mo(4)-ref(mo(4),-1),50,E),10,S)


For additional help with formulas, please see the Formula Primer.

If you cannot find the custom formula you need, Equis International can create formulas for you. If you would like more information on this service, CLICK HERE.