Detrended Comprehensive Price Indicator for MetaTrader 5 – Free Download [TradingFinder]

The Detrended Composite Price Indicator was designed by John Ehlers. This trading tool facilitates the analysis of short-term cycles by removing long-term trends from price charts.

This indicator removes trends from price data and helps analyze overbought and oversold conditions and identify reversals in shorter time periods. The output of this indicator is shown as a colored histogram at the bottom of the chart.

Detrended comprehensive price indicator table

The table below shows the general characteristics of the detrended composite price indicator.

Detrended comprehensive price indicator at a glance

The Detrended Composite Price Oscillator is a technical analysis tool on the MetaTrader 5 platform that eliminates long-term price trends and focuses on 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:

• The green line is a signal of a short-term bullish trend;
• The red line indicates a change in the short-term bearish trend.

Note : This oscillator is designed to simulate market fluctuations independent of long-term trends.

Indicators in a Bullish Trend

The chart below shows the Global Gold Index (XAU/USD) on the 1 hour time frame. The appearance of green lines in oscillators represents positive fluctuations or an uptrend. When these green lines appear continuously with an upward slope, they signal the beginning of a bullish trend and create favorable conditions for entering a buy trade.

Indicators in a Bearish Trend

The chart below shows the Australian Dollar against the Canadian Dollar (AUD/CAD) on the 4-hour time frame.

A red line appearing at the bottom of the chart indicates a short-term bearish trend. These lines highlight negative changes in the market and show price declines within a specific time frame.

Detrending Comprehensive Price Indicator Settings

The image below shows the setup of the Detrended Comprehensive Price Indicator:

• 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 an effective tool in technical analysis that removes the effects of long-term trends from price data.

This trading tool focuses on short-term market fluctuations and provides more accurate real-time price change signals.