Cynthia Kase - Kase Peak Oscillator - page 7

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I've read through this thread and I have also read Cynthia Kase's book and articles and I'm still confused as to what the algorithm for the Kase Peak Oscillator (KPO) is. I list 2 of her articles for reference.

The Exchange Newsletter -- An Information Source for eSignal Subscribers

http://www.kaseco.com/support/articles/The%20Two%20Faces%20of%20Momentum.pdf

According to those articles KPO=KSDIup - KSDIdn, where

KSDIup=log(H[0]/L[n])/volatility*sqrt(n),

KSDIdn = log(H[n]/L[0])/volatility*sqrt(n),

and volatiliy is the standard deviation of the logarithmic price change.

My questions are:

1. Why in none of the codes posted in this thread is the log of the price change used? Instead the linear price difference itself is used. For reference the codes in this thread are based on the following algorithm

Kase Peak Oscillator by Cynthia Case Tradestation Indicators Metatrader MT4 Indicators and Expert Systems, Metastock, Tradestation, Amibroker - Forex Trading Systems

2. Also for volatily which is used in the denominator the codes posted in this thread use the Average True Range (ATR) instead of the standard deviation of the logarithm price change suggested by Cynthia in her articles. ATR does not measure standard deviation so why is it used?

3. Finally I don't understand how KPO is supposed to be self optimized over 50 different trend lengths that is claimed in many sites. I didn't see any loops in the code that do that. The following documents

http://www.aspenres.com/Documents/pdf/KaseStudies.pdf

Kase Peak Oscillator

which are manual for her indicators lists 3 parameters for KPO

cycle range low-8, cycle range high-65 and scaling factor-50. I imagine these are related to the self-optimization of the KPO but it is not clear what their roles are? In her articles she mentions that a loop is used to find the maximum values of KDSIup and KDSIdn but again KDSI is not used in the above algorithm. I would guess that the loop runs from cycle range low to cycle range high (8-65) but then what does the scaling factor of 50 do?

Any answer would be greatly appreciated.

Thank you in advance,

Nikos

 

Kase permission stochastic using smoother for smoothing

It is different than the version in the advanced section though (different smoothing used)

 
mladen:
Kase permission stochastic using smoother for smoothing It is different than the version in the advanced section though (different smoothing used)

Nice. Thanks

 

This is the kase permission stochastic smoothed posted by Mladen yesterday, just added a channel with zig zag.

 

Kase CD peak oscillator (work with the new metatrader) : kasecd_peak_oscilator.mq4

 

Kase indicators


The threads/posts

  1. Kase peak oscillator indicator - the post: every peak is marked regardless of its value compared to deviations. If you turn the allPeaksMode to true, it will work that way.  
  2. Kase CD indicator - the post: where CD means convergence / divergence.
  3. Kase permission stochastic indicator - the post: this is a rather interesting version of stochastic with some advanced parameters incl smooth coefficient, displacement in bars used to calculate and so on.
  4. Kase permission indicator - the post: this is in fact Kase permission stochastic made as bars instead of lines.
  5. Kase permission stochastic smoothed indicator and Kase permission stochastic oma smoothed indicator - the post. Instead of using simple moving average in the final step of smoothing (as in the original) using two new "flavors" for that final smoothing : one more average smoothed and Jurik smoothed. Crosses are not lagging compared to the original and we are getting considerably smoother values.
  6. Kase DevStop indicators with two versions - the page. In one of the version - the calculation is done according to metastock formula. The second version is having unique calculation which is more useful than such as original version. 
  7. Kase peak oscillator with divergence lines - the post. It is the other great indicators based on from Kase StatWare for MT4: this indicator is having divergence lines. "A divergence occurs when the trend of a security's price doesn't agree with the trend of an indicator. When divergences occur, prices usually change direction to confirm the trend of the indicator. This occurs because indicators are better at gauging price trends than the prices themselves". More about divergence - read this thread  
    ...  and more advanced indicators incl indicators witgh alert, MTF, etc - read key thread. 
  8. Cynthia Kase - Kase Peak Oscillator - the thread

The books

  1. Kase on Technical Analysis Workbook, + Video Course: Trading and Forecasting (Bloomberg Financial) 1st Edition - the post. 

The video

  1. Cynthia Kase on Kase Bar Charting - Part 1 - video post.
  2. Cynthia Kase on Kase Bar Trading - Part 2 - video post. 

The articles

  1. Using MetaTrader 4 for a Time Based Pattern Analysis
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