Monday, June 15, 2015

Kase on Technical Analysis

Cynthia Kase is a veteran market technician who is an educator, author (multiple papers and a 1996 book, Trading with the Odds), former energy trader, and trading indicator developer. Her Kase StatWare package can be purchased for use on multiple trading platforms.

Kase on Technical Analysis (Wiley, 2015) is a multimedia package: a 13-part video series (online or in DVD format) with a complementary paperback, Kase on Technical Analysis Workbook. The videos run roughly 6.5 hours; the workbook is just shy of 200 pages, although nearly half the book is white space.

As one might expect, the videos highlight Kase’s proprietary studies as an improvement over classic indicators, but they are more than a lengthy infomercial. Moreover, as Kase suggests, she has tried “to describe enough about [her] indicators, including the basic math, so that those who understand the concepts explained, and who have the programming capability, could, if they wanted, duplicate or at least come close to duplicating [her] work, for their personal use.” For instance, unlike traditional momentum indicators, which “generally evaluate current closes relative to past closes or high-low ranges,” hers “are based on statistical measures of serial dependency, normalized for logarithmic volatility, and optimized for cycle length.” (p. 173) Reverse engineering these indicators sounds like a daunting task; approximating them is probably achievable; understanding their rationale should be within the reach of every trader.

Despite the mathematical complexity of the Kase studies, the videos are most appropriate for relative beginners. They explain how to forecast and estimate risk and how to enter and exit trades using chart patterns and traditional indicators such as moving averages, DMI, ADX, RSI, and MACD, as well as Kase StatWare.

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