Detrended Price Oscillator MT4 - MetaTrader 4 Script | Forex Indicators Download - MetaTrader 4 Resources

Detrended Price Oscillator (MetaTrader indicator) — a version of the price oscillator based on the difference between the current price and the simple moving average (Period/2) + 1 bar. and Stochastic Oscillator , an indicator designed to show short-term trend changes (price fluctuations within a long-term trend). The indicator is displayed in a separate window on the chart. You can use this Detrended Price Oscillator (DPO) indicator in both the MT4 and MT5 versions of the platform.

Trend changes are signaled by the indicator's crossover with the zero level. However, since this indicator is lagging, predicting such crossovers may be a better technique. It is not a very accurate indicator for direct trading, but it can still be used for short-term trend confirmation.

Another possibility to detrend the price oscillator is to use detection disagreement with price chart. As shown in the chart below, a major trend reversal can be spotted by comparing the double top shown by price to the lower high on the DPO chart.

Attachment download

📎 detrended_price_oscillator.mq4 (4.32 KB)

Source: MQL5 #55374