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Kase Analysis includes a filtering system called the Permission Screen based on the popular Kase Stochastic. The Kase Permission Screen generates a higher time frame filter “permission long” or “permission short.” Whenever a signal is generated one can easily know the status of the longer time frame filter.
Kase Permission Screen
The Kase Permission Screen applies the rules for the Permission Stochastic and displays them in a simple color histogram.
Interpretation
If the histogram is green, permission long exists, which means you can take any long trades generated short term. If the histogram is red, permission short exists, which means you can take any short trades generated short term.
The Kase Permission Screen is designed for use in spread trading. To apply the study, plot it against the instruments in a spread. Where the Kase Permission studies are in opposition, go long on the instrument that yields green, and short on the instrument that yields red.
Parameters
The Kase Permission filter is designed with simplicity in mind. Therefore, the parameters for this study are correspondingly simple.
There are four study elements in the Kase Permission filter. Two elements are study variables:
Period
Multiplier
Two elements are rendered indicators:
Perm Long
Perm Short
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Field |
Function |
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Period |
Enables you to select the number of bars used to calculate the standard deviations for each variable used in the Kase Permission filter.
Defaults:
Period – 9 Multiplier – 5
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Color |
Enables you to select the color in which the respective study element is rendered.
Defaults:
Perm Long – Green Perm Short – Pink
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Graph |
Enables you to select the rendering method for the respective study element.
Defaults:
Perm Long – Histogram Perm Short – Histogram
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Line Style |
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Line Width |
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