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Detrended Price oscillator(DPO)
Detrend price oscillator is a trading indicator that is used to remove the long term trends thus focusing on price movement by using a displaced simple moving average thus allowing an individual to know the overbought or oversold market condition. By using a displaced moving average, detrend price oscillator will be considered to be an oscillator with an oscillation at point 0.00. Detrend price oscillator is based on the centerline as well as divergence. Detrend price oscillation is therefore calculated using the following formula; Detrend price oscillator= closing price -SMA of { (n/2)+1 } Since Detrend price oscillator is based on the centerline, it, therefore, follows that when the detrend price oscillator crosses above 0.00, that will be an indication of an upward market movement thus the trader should be trading upwards while when the detrend price oscillator crosses below 0.00, that will be an indication of a downward market movement thus the trader should be tra...
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