Cynthia Kase Studies

See Also

 

www.kaseco.com

Time-Based Charts

Kase indicators are most useful when presented on a 3-chart page.  A typical Kase page consists of a Daily chart, a "Monitor" chart (1/5 to 1/8 of a day), and a "Timing" chart (1/3 to 1/5 of the monitor chart).

 

Monitor Chart

To create the Monitor chart, take the number of minutes the instrument trades during the day and divide by 5 to 8 (1/5th to 1/8th of the total).  For example, if you are setting up a chart of a commodity, which trades for 325 minutes such as crude oil, this translates to 41 to 65 minutes.

 

Timing Chart

The Timing chart should be 1/3rd to 1/5th the length of the Monitor chart.  Simply take the number of minutes chosen for the Monitor and divide by 3 to 5 to attain the appropriate Timing chart length.

Equi-tick Charts

Equi-tick charts are an additional way to set up Kase pages. Equi-tick charts are constant volume bar charts, a recent innovation and improvement in traditional bar charting. Each "tick" represents one change in price. An Equi-tick volume bar, constructed using a tick count of 20, for example, would contain the price activity over 20 price changes or ticks.

 

A major advantage of constant volume bars is that they are more regular, building slowly when the market is quiet and quickly when the market is busy, and thus, due to lower variability, are less risky.

 

Monitor Chart

To create an Equi-tick monitor chart, choose 55 as the number of ticks to be represented per bar. When the chart opens, count the number of bars per day, and adjust using the criteria listed below.
 

Timing Chart

To determine the number of ticks per bar to set for your Timing chart, divide the number of ticks per bar used for the Monitor chart by a number between 3 and 5.  You should have between 15-25 bars per day for your Timing chart.