Detrended Comprehensive Price Indicator for MetaTrader 4 – Free Download [TradingFinder]

The Detrended Composite Price Indicator was developed by John Ehlers with the goal of removing long-term trends from price charts in order to focus on short-term cycles. In other words, this trading tool detrends price data, allowing analysis of reversals and overbought/oversold conditions in a shorter time frame.

Additionally, the indicator's output is displayed as a colored histogram at the bottom of the chart.

Detrended comprehensive price indicator table

The general specifications of the detrended composite price indicator are shown in the table below.

Detrended comprehensive price indicator at a glance

The Detrended Synthetic Price Oscillator (DSP) is a tool that strips long-term price trends from data and analyzes short-term market fluctuations. This tool typically applies a filter such as a Hilbert filter or linear regression to isolate the price trend and then displays only oscillatory changes, as shown below:

• Showing a green line is considered a sign of a short-term bullish trend;
• Showing a red line indicates a change in the short-term bearish trend.

Note : This oscillator is designed to simulate market fluctuations and is not affected by long-term trends.

Indicators in a Bullish Trend

The chart below shows EUR/GBP on the 15-minute time frame.

The appearance of a green line in the DSP oscillator represents positive fluctuations or a bullish trend. When these green lines appear continuously and slope upward, it signals the beginning of a bullish trend and creates a favorable area to enter a buy trade.

Indicators in a Bearish Trend

The chart below shows the Nasdaq 100 (NAS100) Index on the 4-hour time frame. A red line appearing at the bottom of the chart indicates a short-term bearish trend. In this oscillator, the red line represents negative market movements, reflecting price declines over a given period.

Go to Trend Comprehensive Price Settings

The image below shows the settings panel of the Detrended Complex Price Oscillator:

• DSP period : calculation period of DSP parameters
• DSP price : Calculation of DSP median price
• Signal period : Signal period calculation
• Change color on : Change color according to settings

Conclusion

The Detrended Price Oscillator (DSP) is a useful tool for technical analysis that removes the effects of long-term trends from price data. This tool focuses on short-term market fluctuations and provides more accurate real-time price change signals.