![]() ![]() A higher high followed by a lower high on the price chart with the DPO printing a higher high followed by another higher high - the price trend is reversing to the downside but still surpassing the earlier average by the same or greater amount as it did on the previous higher high - i.e., the uptrend was weaker during the period ½n + 1 bars ago.A lower low followed by a new lower low on the price chart with the DPO printing a lower low followed by a higher low - the price failing to go down below the earlier average by the same amount as it did during the previous lower low - i.e., the downtrend was steeper during the period ½n + 1 bars ago.A higher high followed by a new higher high on the price chart with the DPO printing a higher high followed by a lower high - the price failing to surpass the earlier average by the same amount as it did on the previous higher high - i.e., the uptrend was steeper during the period ½n + 1 bars ago. ![]() If the zero line is crossed by the DPO from above, it means that the price declined to reach that range, whereas if zero line is crossed by the DPO from below, it means that the price rose to reach the earlier range.Ĭonsidering the above, the divergence between the DPO and the price chart can be interpreted as following: This implies that the price returned to some previously visited range. Therefore, when the DPO is at the zero level, it means that the current Close value is the same as the average of the Close values over n bars ½n + 1 bars ago. It supports native alerts, email alerts, and push-notifications.įrom the mathematical point of view, the current DPO value is the difference between the current Close value and the average of the Close values over n bars ½n + 1 bars ago. The present implementation of the DPO can also issue alerts on a cross of the zero level. The formula to calculate the detrended price oscillator at the bar i is the following: You can use this Detrended Price Oscillator (DPO) indicator in both MT4 and MT5 versions of the platform. The indicator is displayed in the separate window of the chart. Unlike the stochastic oscillator, this indicator aims to show the short-term trend changes (price waves inside the long-term trend). Detrended Price Oscillator (MetaTrader indicator) - a version of the price oscillator based on the difference between the current price and the simple moving average shifted by (Period / 2) + 1 bars. ![]()
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