Kase Bars for NinjaTrader

Explore a different way to view market volatility with Kase Bars, a custom bar type developed by Kase and Company and now available free on NinjaTrader. In a recent presentation, Dean Rogers, president of Kase and Company, shared how these bars can help traders approach charting and indicator performance with a more consistent lens.

 

What are Kase Bars?

 

Kase Bars are built on a foundational concept in technical analysis: true range. Unlike time-based bars, which can vary widely in size depending on market volatility, Kase Bars aim to standardize chart activity by plotting bars of equal true range. This approach can help traders better assess trends, manage risk, and filter out market noise.

Originally introduced by Cynthia Kase in the 1990s and later developed for various trading platforms, Kase Bars are now available as a free download for NinjaTrader users.

 

How Kase Bars work

 

Kase Bars measure true range as the greatest of three values: the difference between the current high and low, the absolute difference between the current high and the previous close, and the absolute difference between the current low and the previous close. By setting a target range based on the instrument’s minimum tick size, each bar represents a consistent unit of volatility.

For example:

• A 25-point target range on crude oil (tick size = $0.01) equates to bars with approximately $0.25 true range.
• On the E-mini S&P 500 (tick size = 0.25), the same 25-point setting generates bars around $6.25.

Base period data—tick or minute—is used to build the bars. Tick data offers higher accuracy but less historical depth, while minute data allows broader historical review with slightly less precision.

 

Why use Kase Bars?

 

Using Kase Bars can help smooth out the effects of uneven market activity. Instead of overloading indicators with excess data during volatile periods or producing limited signals during flat sessions, these bars aim for a balanced data stream. This can:

• Normalize volatility across a chart
• Reduce whipsaws in indicators like moving averages
• Provide a more consistent basis for setting stops and managing trades

Dean demonstrated how even simple strategies, such as moving average crossovers, can become more stable and actionable when applied to Kase Bars versus time-based charts.

 

Choosing the right bar length

 

When setting up a Kase Bar chart, selecting the appropriate bar length is key to ensuring your chart aligns with your trading strategy and risk tolerance. There are two common approaches:

• Base on average true range (ATR): Plot a 30-period ATR on your typical time-based chart, then choose a midpoint value over the past 10 trading days. This can help align your Kase Bar chart with your current strategy.
• Base on risk tolerance: Use tools like Kase Statware’s Rev Amounts and Dev Stops to determine how much risk each bar size represents, then adjust accordingly. For example, if you’re comfortable risking $0.75 per trade on crude oil, a $0.25 Kase Bar might be appropriate.

Whichever method you choose, the goal is to create a chart that reflects your style and maintains consistent risk across changing market conditions.

 

Getting started with Kase Bars and NinjaTrader

 

Kase Bars and X-Range Bars are available for free to all NinjaTrader users. Visit Kase and Company’s website to learn more.

Kase Bars are just one part of Kase and Company’s trading framework. Their indicators—including the Kase Peak Oscillator, Rev Amounts, and Dev Stops—are built to integrate with Kase Bars and enhance signal quality and risk control. These add-ons are available separately and can be used in NinjaTrader’s strategy builder and custom NinjaScripts.

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