# Kase Studies

Kase Studies is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

Kase Studies unites the Peak Oscillator, KaseCD histogram and DevStops in one build: momentum measured in volatility units across an 8-to-65-bar scan, peak-out thresholds at 2 deviations of the oscillator's own history, and a trailing exit ladder stepped at 1, 2.2 and 3.6 deviations of the two-bar true range. Exhaustion flags and exits from a single framework.

- Indicator in the LuxAlgo Library, by LuxAlgo, published May 24, 2026.
- Access: free.
- Concepts: [Kase Studies](https://www.luxalgo.com/library/concept/kase-studies/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=zpev62q96ke3tb5r5vcmaxz1
- Page: https://www.luxalgo.com/library/indicator/kase-studies/

**Kase Studies** is the definitive clean implementation of the [Kase studies](https://www.luxalgo.com/library/concept/kase-studies/) suite. The Peak Oscillator sizes every move in volatility units over a scanned range of lookbacks from 8 to 65 bars, plotting the strongest up statistic minus the strongest down statistic; KaseCD, its MACD-style derivative, sits behind it as a histogram for divergence work; and the DevStop exit ladder is drawn directly on the price chart.

## How to Trade the Kase Studies?

- **Peak-out diamond**: the oscillator stretched beyond a threshold built from 2 deviations of its own history - an exhaustion candidate, grounds to take profits or tighten stops, never an automatic reversal.
- **KaseCD divergence**: price presses a new extreme but the histogram tops out lower - momentum internals thinning.
- **Zero-line cross**: volatility-normalized up-moves or down-moves now dominate; alerts fire both ways.
- **DevStop ladder**: a close under the warning line is the first rung giving way; a close through DevStop 3 flips the ladder to the other side.

Thresholds derive from the instrument's own behavior, so one setting serves very different markets - the suite's design premise.

## Kase Studies Settings

- **Scan Lengths** (default 8 to 65): shortest and longest trend lengths scanned.
- **Peak-Out Threshold (Deviations)** (default 2) and **Threshold History** (default 100): multiple and window behind the peak-out lines.
- **Show KaseCD Histogram** (default on), with **Fast Length** (default 12) and **Slow Length** (default 26).
- **Show DevStops on Price** (default on): the exit ladder.
- **Deviation Window** (default 20): bars behind the mean and deviation of the two-bar true range.
- **Stop 1 / Stop 2 / Stop 3** (defaults 1, 2.2, 3.6): deviation steps beyond the warning line.
- **Oscillator Gradient** and **Peak-Out Markers** (both default on): style toggles.

## Frequently Asked Questions

### How do Kase DevStops differ from the Chandelier Exit?

Both trail from the trend extreme, but the [Chandelier Exit](https://www.luxalgo.com/library/indicator/chandelier-exit/) hangs a single ATR multiple below it, while DevStops build a graded ladder from the mean and deviation of the two-bar true range - budgeting for the pair of adverse bars, gaps included, that actually takes exits out.

### Why 2.2 and 3.6 rather than 2 and 3?

Range distributions are right-skewed, and Kase's scheme corrects for it: the outer steps land near 2.2 and 3.6 deviations so the disaster stop makes room for the odd outsized bar rather than assuming ranges behave symmetrically.

### Is a peak-out a sell signal?

No - it flags statistical stretch, and a stretched market can stretch further still. Let KaseCD divergence upgrade or dismiss the warning, and let the DevStops define where the exit belongs.

## Related indicators

- [Hot Zone Radar](https://www.luxalgo.com/library/indicator/hot-zone-radar/) (Volatility Percentile/rank): markdown at https://www.luxalgo.com/library/indicator/hot-zone-radar.md
- [Volatility Signature Plot](https://www.luxalgo.com/library/indicator/volatility-signature-plot/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/volatility-signature-plot.md
- [The Range Indicator](https://www.luxalgo.com/library/indicator/the-range-indicator/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/the-range-indicator.md
- [Jump Detection](https://www.luxalgo.com/library/indicator/jump-detection/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/jump-detection.md
- [Volatility of Volatility](https://www.luxalgo.com/library/indicator/volatility-of-volatility/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/volatility-of-volatility.md
- [Garman-Klass–Yang-Zhang Hybrid](https://www.luxalgo.com/library/indicator/garman-klass-yang-zhang-hybrid/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/garman-klass-yang-zhang-hybrid.md
- [GARCH-family Clustering](https://www.luxalgo.com/library/indicator/garch-family-clustering/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/garch-family-clustering.md
- [Yang-Zhang Estimator](https://www.luxalgo.com/library/indicator/yang-zhang-estimator/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/yang-zhang-estimator.md

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Source: https://www.luxalgo.com/library/indicator/kase-studies/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/