Momentum

Detrended Price Oscillator

DPO

Subtracts a past SMA from the current close to remove the dominant trend, leaving behind shorter price cycles. Traders use DPO peaks and troughs to measure cycle length and time entries within recurring patterns.

Tips

DPO is not designed for trend-following; use it to estimate the length of price cycles and anticipate when the next turn is due

Measure the distance between consecutive DPO peaks or troughs to find the average cycle duration, then time entries accordingly

Parameters

Period

2 - 100