Detrended Price Oscillator

The Detrended Price Oscillator ("DPO") attempts to eliminate the trend in prices. Detrended prices allow you to more easily identify cycles and overbought/oversold levels.To calculate the DPO, you specify a time period. Cycles longer than this time period are removed from prices, leaving the shorter-term cycles.

To calculate the Detrended Price Oscillator, first create an n-period simple moving average (where "n" is the number of periods in the moving average).

Now, subtract the moving average "(n / 2) + 1" days ago, from the closing price. The result is the DPO.

DPO = Close – (Moving Average "((n/2)+1)" days ago)

The DPO would be shown the same way as the moving average graph where the user can provide the value of n.