Detrended Price Oscillator: Price Minus Its Simple Moving Average

Summary

The document explains the Detrended Price Oscillator (DPO) as the difference between a closing price and its simple moving average over a chosen period. By subtracting the moving average, the indicator filters out some of the broader price direction, producing a series that can be used to examine shorter-term price movement. The moving-average period determines the reference level used in the calculation.

The material gives the formula and identifies the indicator as an implementation for MetaTrader, but it provides no trading rules, chart interpretation guidance, performance results, or empirical evidence. It also notes that the implementation relies on a separate smoothing library. Readers should therefore treat this as a brief definition and implementation overview, not as a tested strategy or a complete guide to using DPO signals.

Key ideas

• DPO is calculated by subtracting an N-period simple moving average from the closing price.
• The moving-average period sets the baseline used to detrend price.
• The indicator is described as filtering broader price direction in a manner similar to a moving average.
• The document gives no signal rules or evidence of trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.