KG FI

The KG FI is extremely important as it is showing an up trend or a downtrend and this is interpreted relative to the 0 level. Above zero means an up trend and below zero a down trend.

However, it is not coming by itself as it is filtered by a moving average, a smoothed one, in order to avoid the situations in which the indicator is above zero and falling or below zero and rising.

A valid signal based on this indicator will be the moving average to be below the indicator and KG FI to be bigger than zero (buy call signal) and the moving average to be above the indicator and KG FI to be lower then zero (buy put signal).