The KasePeakOscillator (KPO) is a technical indicator designed to detect market exhaustion, trend reversals, and momentum shifts by integrating price action with statistical volatility measures. It calculates the relationship between short-term and long-term price cycles adjusted for historical volatility, producing a smooth oscillator around a zero line.
Key components include:
- Histogram (KCD): Represents core momentum; zero-line crossings indicate short-term trend changes.
- Dynamic Bands: Volatility-adjusted thresholds signaling overbought or oversold conditions.
- Automated Peak Detection: Identifies momentum extremes signaling potential trend exhaustion.
The KPO provides automated alerts for peak exhaustion and divergence signals, marking bullish and bearish divergences when price and momentum disagree. Trend direction can be confirmed by the histogram’s position relative to zero.
Features include adjustable sensitivity for various asset classes such as Forex, indices, and cryptocurrencies, an integrated alert system (sound, message, visual icons), and modes tailored for scalping or swing trading. The indicator supports analysis based on price bars and outputs reversal and divergence signals to assist in trading decisions.