InvestorQ : What exactly is meant by the De-trended Price Oscillator or the DPO and how is it interpreted by traders to take positions in the market?
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What exactly is meant by the De-trended Price Oscillator or the DPO and how is it interpreted by traders to take positions in the market?

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2 years ago
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One way to look at technicals or charts is to focus on trends and then trade trend. That is for the very short term. However, if you are willing to take a slightly more perspective view then you can focus on cycles which can give a longer time and greater reliability. The De-trended Price Oscillator attempts to remove trend from price with a view to allowing identification of cycles more easily. Cycles longer than the period specified for the indicator are removed, leaving only the shorter-term cycles. DPO is displaced to the left so that the indicator is aligned with the peaks and troughs in price.

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