|Managed Forex Accounts|
||Choose from a multitude of forex traders. More||
|Featured Forex Brokers|
||Open a free demo or live account with a featured forex broker. More||
||Copy the trades of expert traders automatically on your own account. More|
Detrended Price Oscillator (DPO)
This Detrended Price Oscillator is intended to remove trend from price. This way it is easier to see cycles in price, because it does not react to the most recent price movements. And it shows levels of overbought and oversold for a medium range in time. It also effective at spotting trend changes in long cycles.
If the DPO falls below and then rises back above the oversold level.
If the DPO falls below zero and then rises back above it.
If the DPO creates a higher trough, this is a sign of an up trend.
If the DPO rises above and then falls back below the overbought level.
If the DPO rises above zero and then falls back below.
If the DPO forms a lower peak, this is a sign of a down trend.
Price ( 20 periods /2 + 1 ) periods ago - the 20 day period simple moving average.
Bookmark this page
Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.