Kase Permission Stochastic Histogram is a free mt4 (Metatrader 4) Forex indicator that provides buy & sell signal arrows with trend histogram.
The indicator can be used as a standalone trading tool for both trade entry and exit or as an additional trend-following filter that works together with an existing strategy of system.
Kase Permission Stochastic Histogram gets displayed in both the main MT4 chart and a sub-window.
Buy & Sell Trade Example
- Open a buy order when the blue buy arrow appears on the chart.
- Open a sell order when the red sell arrow appears on the chart.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “kase-permission-stochastic-histogram.mq4” indicator for MT4
Indicator Chart (EUR/USD M5)
The picture below shows the Kase Permission Stochastic Histogram mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method when trading with the Kase Permission Stochastic Histogram Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Signal
Does the indicator repaint? No.
Kase Permission Stochastic Histogram + Legacy Trader MT4 Scalping Strategy
This MT4 scalping strategy combines the Kase Permission Stochastic Histogram Indicator and the Legacy Trader MT4 Indicator to capture fast intraday price movements.
The Kase Histogram shows the trend direction with green bars for bullish momentum and red bars for bearish momentum.
The Legacy Trader provides clear entry signals through colored lines, with a blue line indicating a buy and a magenta line signaling a sell.
This strategy is designed for scalpers on M1, M5, and M15 charts, making it suitable for traders who want to capture quick market movements.
Buy Entry Rules
- Confirm the Kase Histogram is green, indicating a bullish trend.
- Wait for a blue line signal from the Legacy Trader, confirming a buy opportunity.
- Enter a buy trade at the close of the candle where the blue line appears.
- Place a stop loss below the most recent swing low or 10–15 pips below the entry point for lower timeframes.
- Set a take profit target of 15–25 pips for M1, 25–40 pips for M5, or trail the stop if momentum continues strongly.
Sell Entry Rules
- Confirm the Kase Histogram is red, indicating a bearish trend.
- Wait for a magenta line signal from the Legacy Trader, confirming a sell opportunity.
- Enter a sell trade at the close of the candle where the magenta line appears.
- Place a stop loss above the most recent swing high or 10–15 pips above the entry point for lower timeframes.
- Set a take profit target of 15–25 pips for M1, 25–40 pips for M5, or trail the stop if the trend continues.
Advantages
- Combining trend and signal indicators increases the probability of successful trades.
- Clear buy and sell signals simplify decision-making for scalpers.
- Works well on multiple timeframes, providing flexibility for different trading styles.
- Defined stop loss and take profit levels improve risk management.
- Adaptable to multiple currency pairs during active market hours.
Drawbacks
- High-frequency trading may increase spread costs and reduce net gains.
- Sudden news events can cause early stop-outs.
Example Case Studies
Case Study 1: AUD/USD M5 Chart
The Kase Histogram turned green, showing bullish momentum.
Shortly after, a blue line appeared on the Legacy Trader indicator, signaling a buy.
A trade was entered at 0.6750 with a stop loss at 0.6740 and a take profit at 0.6765.
The trade reached its target within 18 minutes, earning 15 pips.
This demonstrates how the combination of trend and signal indicators provides fast scalping opportunities.
Case Study 2: USD/JPY M1 Chart
The Kase Histogram turned red, indicating bearish momentum.
A magenta line appeared on the Legacy Trader, signaling a sell opportunity.
A sell trade was entered at 145.80 with a stop loss at 145.95 and a take profit at 145.65.
The trade hit its target within 12 minutes, capturing 15 pips.
This shows the strategy works effectively on very short timeframes for quick intraday gains.
Strategy Tips
- Always confirm the trend direction with the Kase Histogram before taking signals from the Legacy Trader.
- Avoid trading during major economic news events to reduce the risk of sudden volatility.
- Adjust stop loss and take profit levels based on the currency pair and timeframe.
- Consider trailing the stop when the trade moves strongly in your favor to lock in profits.
Download Now
Download the “kase-permission-stochastic-histogram.mq4” indicator for Metatrader 4
