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Kase Bar

Kase Bars are equal True Range bars previously known as Kase Universal Bars. The Kase Bar method creates bars with a true range based on a user's specified Target Range value by using only real price data. Kase Bar charts look like a traditional bar or candlestick chart with the exception that the size of each bar is dictated by a Target Range value; all the bars are approximately the same size (range).

Kase Bars have two main advantages over other “equal range” bar methods.

Kase bars are based on equal true ranges, which takes into account gaps that may occur between the previous bar’s close and the current high or low into the bar’s range; as opposed to other “equal range” bar methods that only account for the high-low range and leave out any gaps.

Kase Bars are built using only real data. If there are any gaps in the underlying data; such gaps are shown as opposed to filling the gap by creating synthetic bars. If the minimum range between two ticks exceed the target range, the actual minimum range is shown. This is in opposition to other “equal range” bar methods, which force bars to be an exact size using synthetic data.

For example, if two sequential prices were $10.10 and $10.20, Kase Bars using a Target Range of .05 (5-cents) will not insert synthetic data, but instead will generate a 10-cent bar since that is as close to the target range as one can get with the real data. Other “equal range” would have to insert a synthetic tick at $10.15, breaking up the 10-cent move into two bars, each with a range of 5-cents.

Source: http://help.tradestation.com/08_08/t..._bar_chart.htm

See also: http://www.kaseco.com/bloomberg/kasebars/index.php

Similar bar types include Range, Renko, Flex Renko, Uni Renko etc

Created by  steve2222 , May 17th, 2016 at 07:06 AM
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