Detrended Price Oscillator (DPO)
Detrended Price Oscillator
Detrended Price Oscillator (DPO) is an indicator for eliminating trends in prices.
Detrended Price Oscillator (DPO) indicator is used to isolate short-term cycles, from long-term cycles.
How DPO indicator does it?
How to trade with DPO indicator
DPO trading During Trending Markets
Identify a trend and trade in the direction of the main trend.
Buy when DPO hits zero from above or dips below zero for a while and then goes up above zero.
Sell when DPO hits zero level from below or even crosses above zero for a while and then turns back below zero.
DPO trading During Ranging Markets
Identify overbought and oversold levels individual for every currency pair based on the past price behavior.
Buy after DPO dips below an oversold zone and then exits from it closing above the oversold zone.
Sell after Detrended Price Oscillator enters an overbought zone and then exits from it and closes below the overbought zone.
DPO indicator formula