Kase Peak Oscillator: Volatility-Normalized Peak Detection

Summary

The Kase Peak Oscillator is presented as a technical indicator intended to identify unusually strong directional price moves and local peaks. It combines logarithmic high-to-low price movements across a range of lookback periods with a volatility estimate derived from standard deviation of log returns. The resulting directional measures are smoothed and scaled by recent volatility, with a sensitivity setting controlling their magnitude.

The indicator builds adaptive upper and lower thresholds from the recent average and standard deviation of the absolute oscillator value, subject to a fixed floor. It marks local turning points when the prior oscillator value is a local extreme; the default mode also requires that the point exceed the adaptive threshold, while an alternate setting marks local extremes without that filter. The document gives suggested parameter settings and describes this as a translated second version of the indicator. It provides no performance tests, trading rules, asset-specific guidance, or evidence that the signals are profitable, so the oscillator should be treated as an indicator construction rather than a validated strategy.

Key ideas

• The oscillator compares logarithmic price movements across multiple horizons and normalizes them by estimated volatility.
• Smoothed directional measures determine the oscillator’s positive or negative readings.
• Adaptive thresholds use recent absolute oscillator values and include a fixed minimum level.
• Peak markers can be filtered by the threshold or show all local oscillator extremes.
• The document provides no empirical results establishing strategy performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.