KCCSS provides an at-a-glance method for gauging the strength of buy and sell signals, using blue shades for longs and red shades for shorts (or whatever colors you choose).
Longs
1st Class Longs
Philosophy: A first-class buy signal has occurred when traditional timing signals, one for each dot, have triggered AND have been permissioned long by the imbedded Permission Screen.
Interpretation: When three blue dots appear on a bar, a buy signal has occurred. Sometimes the size (range) of the bar will not be sufficient for all three blue dots to appear. In such cases, the color of the bar should be used to confirm the signal.
2nd Class Longs
Philosophy: Sometimes the Permission Stochastic does not trigger clear permission long rules. When the permission trigger is ambiguous, but traditional timing signals, one for each dot, have triggered, a 2nd class long signal has been generated.
Interpretation: Second-class buy signals are generated when 2 consecutive bars contain 2nd class long signals. The 2nd bar should exhibit a higher high and higher low.
3rd Class Danger Longs
Philosophy: A danger signal triggers when traditional timing signals, one for each dot, occur AND have NOT been permissioned by the imbedded Permission Screen.
Interpretation: Three consecutive danger bars constitute a buy signal, if the bars exhibit higher highs and higher lows, and vice versa for sell signals. The danger signal also can identify a pullback from which a second entry signal is generated. For example, a blue followed by a red danger then a new blue is a second signal. Conversely, a red followed by a blue danger then a new red is a second signal.
Shorts
1st Class Shorts
Philosophy: A first-class sell signal has occurred when traditional timing signals, one for each dot, have triggered AND have been permissioned short by the imbedded Permission Screen.
Interpretation: When three magenta dots appear on a bar, a sell signal has occurred. Sometimes the size (range) of the bar will not be sufficient for all three magenta dots to appear. In such cases, the color of the bar should be used to confirm the signal.
2nd Class Shorts
Philosophy: Inverse of 2nd Class Longs.
Interpretation: Inverse of 2nd Class Longs and Warnings to Shorts.
3rd Class Danger Shorts
Philosophy: A danger signal triggers when traditional timing signals, one for each dot, occur AND have NOT been permissioned by the imbedded Permission Screen.
Interpretation: Three consecutive danger bars constitute a buy signal, if the bars exhibit higher highs and higher lows, and vice versa for sell signals. The danger signal also can identify a pullback from which a second entry signal is generated. For example, a blue followed by a red danger then a new blue is a second signal. Conversely, a red followed by a blue danger then a new red is a second signal.
Warnings
Warnings to Shorts
Philosophy: On the Permission Stochastic “roll-over” effect, where, due to a sharp turn, the %D lags the %K to a great degree and does not trigger traditional permission rules, a warning is generated. (Inverse for *KS2Shorts & Warning).
Interpretation: On Warnings traders should drop-down to the Permission Stochastic for examination. Further, traders should exercise discretion relative to exiting existing short trades and/or taking new long trades.
Warnings to Longs
Philosophy: Inverse of Warnings to Shorts
Interpretation: Inverse of Warnings to Shorts
Color Coded Support System Parameters
Parameters are selected on the Display window.
C1L: 1st Class Long
C1S: 1st Class Short
C2L: 2nd Class Long
W2L: 2nd Class Long and Warning to Shorts
C2S: 2nd Class Short
W2S: 2nd Class Short and Warning to Longs
C3L: 3rd Class Long
C3S: 3rd Class Short
C1L, C2L, and C3L display with an up arrow. C1S, C2S, and C3S display with a down arrow. W2L displays with a square above, and W2S displays with a square below the bar.