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: September 15, 2025

This indicator is designed to identify market sentiment. It is calculated in three stages:

– The Kurtosis component is calculated as follows:

K = n-period momentum of the current bar minus the n-period momentum of the previous bar.

– The Fast Kurtosis component is calculated as follows:

FK = n-period moving average of K.

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

FSK = n-period moving average of FK.

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

Chart Source: VT Trader