Detrended Price Oscillator (DPO)


The Detrended Price Oscillator attempts to remove trend from price in order to allow identification of cycles more easily. Cycles longer than the period specified for the indicator are removed, leaving only the shorter-term cycles. DPO is displaced to the left so that the indicator is aligned with the peaks and troughs in price.

Chart: Detrended Price Oscillator (DPO)

How this indicator works

DPO is used to identify cycles with its peaks and troughs. Cycles can be estimated by counting the periods between peaks or troughs. Users can experiment with shorter and longer DPO settings to find the best fit.


DPO = Close (n/2 + 1 Periods ago) – n Period SMA

Technical analysis focuses on market action — specifically, volume and price. Technical analysis is only one approach to analyzing stocks. When considering which stocks to buy or sell, you should use the approach that you're most comfortable with. As with all your investments, you must make your own determination as to whether an investment in any particular security or securities is right for you based on your investment objectives, risk tolerance, and financial situation. Past performance is no guarantee of future results.