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Detrended Price Oscillator (DPO)
Detrended Price Oscillator (DPO) is indicator in technical analysis which eliminates long-term trends in order to easier identify cycles.
Detrended price oscillator is calculated by formula:
DPO measures difference between closing price and simple moving average (SMA). For n parameter is usually used value of 21.
Detrended Price Oscillator (DPO)
Interpretation
Detrended price oscillator eliminates long-term trends and leaves short-term trends which could be used to identify overbought and oversold signals easier. DPO looks like oscillaltor, but it is not designed for momentum signals.
Example
Open chart for google with DPO indicator.