Detrend Price Oscillator

The objective of the Detrend Price Oscillator (DPO) is to remove the effects of the trend from price and identify potential cyclic patterns and thus take advantage of momentum indicator readings at cyclic extremes.

To do this the DPO is measured by comparing price against a moving average.

However, since moving averages have a built in lag, the current price is compared to the average of (Length/2) + 1 bars earlier.

Indicator Formula: DPO = Close – PMA

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