KASE CD and KASE Peak Oscilator

[Poocher]

Your enthusiasm is great!

But I put the indicator on my charts (like a 5minute $yen) and had no idea what might be buy and sell signals... guess I should buy the book!

[Elliott Wave]

No need to buy the book (although I highly recommend it), simply search google for 'Kase Peak Oscillator'.

Generally what I do is use the Square wave as the trigger, buy when it crosses above zero, sell when it crosses below. When the bar lines cross over the square line (as can be seen in the post below) and then cross back in the opposite direction, thats a trigger to exit the trade as statistically that is likely to be a reversal or peak of the trend.

For example:

            // Condition set 3
            if (Position.MarketPosition == MarketPosition.Long
                && CrossBelow(KaseCD_and_PeakOsc(KasePeriod, kaseExitSmooth).PeakOsc, KaseCD_and_PeakOsc(KasePeriod, kaseExitSmooth).PeakSqWave, 1))
            {
                ExitLong("", "Condition 3");
            }

            // Condition set 4
            if (Position.MarketPosition == MarketPosition.Short
                && CrossAbove(KaseCD_and_PeakOsc(KasePeriod, kaseExitSmooth).PeakOscDown, KaseCD_and_PeakOsc(KasePeriod, kaseExitSmooth).PeakSqWave, 1))
            {
                EnterShort(DefaultQuantity, "Condition 4");
            }

(note: I've modified the indicator to plot red and blue depending on if the PeakOsc is above or below zero, so PeakOscDown is actually the same value as PeakOsc, just a different plot):


You can also use divergence between the green line (KCD) and the price as a good indication of an impending reversal. As shown in the picture above the price is making lower lows, but the KCD is rising. When there is divergence between both the KCD (green) and the PeakOsc (the bars) with the price you can be 'almost' positive the price will reverse.

There could be a better way to optimize entries and exits but this gives a basic idea. I've found increasing the smooth parameter can help reduce false signals, but at the expense of increased lag. I might try to play around with the code and try to switch the moving averages to the new ZeroLagTEMA, but as they say, 'if it ain't broke, don't fix it'

Its a powerful indicator and worth playing around with. I'd love to see more Kase stuff in the future, especially indicators using the 'synthetic bar' concept as I outlined below...

[Poocher]

Thank you for such a detailed answer.

I'll look at it more with your insights in mind.

[Elliott Wave]

I had a request to post the slightly modified version of the indicator, so here it is...

The only difference is that above zero the PeakOsc is blue, and below zero its red.

[Elliott Wave]

I just thought I would mention, that the 'open code' versions of these indicators are nothing like the actual Kase statware indicators.

The versions from Kase (especially the PeakOscillator) are MUCH better.

No doubt the versions here will be useful for some people, but don't use them to judge the real versions.

[NinjaTrader_Bertrand]

Thanks for sharing and your input!

[mmospan]

Kase Oscillator - Kase CD Calculations

Hi all!

I would like to know how the kase oscillator is built! What kind of st-devs are used and so on. I cant read program language so I would appreciate to get the ingredients of that oscillator in plain maths ....

thx for replies

[mmospan]

Hi all!

I would like to know how the kase oscillator is built! What kind of st-devs are used and so on. I cant read program language so I would appreciate to get the ingredients of that oscillator in plain maths ....

thx for replies

Hello guys,

finally I found somebody who encoded it for me, don’t worry!

The last question I have is about the used average in ‘Kase Peak Oscillator’:
[...]
PEAK = WAverage((RWH - RWL),3);
MEAN = average(PEAK,LEN);
[...]
Is there any difference between the 2 averages?

Otherwise I would suggest that the 1st one is a “weighted average” with “length=3” Smooth(3)
And the 2nd one a simple average with “length=30” LEN(30)

Cheers...

[sbgtrading]

NT8 version attached

Here's the NT8 version of the Kase CD and PeakOsc