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Modified DPO as a Moving-Average Support and Resistance Reference

Article MQL5 code base
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Summary

This indicator defines a modified Detrended Price Oscillator as the bar’s closing price minus a moving average. It lets the user choose the moving-average period, calculation mode, and applied price, so the resulting average can be adjusted to form a horizontal reference level that may be used as support or resistance.

The document gives the formula and names four supported average methods: simple, exponential, smoothed, and linear weighted. It offers no trading rules, market examples, performance evidence, or guidance on choosing settings. Treat its support and resistance use as a proposed application of the configurable curve, not as a validated signal.

Key ideas

  • The indicator subtracts a selected moving average from the closing price.
  • The moving average can be configured by period, calculation method, and applied price.
  • The configurable average is intended to help create horizontal support or resistance references.
  • The document provides no empirical validation or rules for interpreting the indicator.

Tags

Technical indicatorsMean reversion

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