Detrended Price Oscillator DPO MT4 indicator - Forex scalper indicatos

Overview

The Detrended cost Oscillator ("DPO") tries to get rid of the trend in prices. Detrended rates enable you to more easily identify rounds and overbought/oversold amounts.

Interpretation

Long-lasting cycles are created up of a set of short-term rounds. Analyzing these shorter term the different parts of the long-lasting rounds are a good idea in determining major turning points within the longer term period. The DPO can help you remove these longer-term cycles from costs.

To calculate the DPO, you specify a time duration. Rounds longer than this time period are eliminated from costs, leaving the shorter-term cycles.

Example:

The next chart shows the 20-day DPO of Ryder. It is possible to note that small peaks in the DPO coincided with small peaks in Ryder's cost, however the longer-term price trend during June had not been reflected into the DPO. It is because the 20-day DPO eliminates rounds of more than 20 times.