Kase DevStop II by Cynthia Kase

Overview

The Kase DevStop indicator is described in Cynthia Kase's "Trading with the Odds". The KDS calculates an average range and 3 standard deviations of the range.

Interpretation

The DevStop is used to determine realistic exit points for trades based on volatility, the variance of volatility, and volatility skew. The 4 lines are defined as a Warning Line and Standard Deviations of 1, 2 and 3. This allows traders to take profit or cut losses at levels at which the probability of a trade remaining profitable is low, without taking more of a loss or cutting profits any sooner than necessary.

© Help for New Traders