Thursday , March 21 2019
Home / Market Analysis / How to trade with DPO indicator

How to trade with DPO indicator

Quick Summary of Detrended Price Oscillator:

The Detrended Price Oscillator is used for long-term trends. And it is use to removed from prices or index indicators. This price oscillator is often used to supplement a standard price chart. Other indicators can be plotted over the Detrended Price Oscillator.

  • DPO is an indicator for eliminating trends in prices.
  • DPO allows to more easily identifying cycles.
  • This indicator is use to isolate short-term cycles, from long-term cycles.
  • By eliminating long term trends. SO DPO helps to focus on shorter price moves/cycles.
  • It easier to spot an overbought/oversold level.
  • Standard DPO indicator setting is 20-period.

How to trade with DPO indicator

  • PO trading During Trending Markets.
  • Identify a trend and trade in the direction of the main trend.
  • Buy when DPO hits zero from above. Dips below zero for a while and then goes up above zero.
  • Sell when DPO hits zero level from below or even crosses above zero. For a while and then turns back below zero.
  • DPO trading During Ranging Markets.
  • Identify overbought and oversold levels on the past price behavior.
  • Buy after DPO dips below an oversold zone and then exits from it closing above the oversold zone.
  • Sell after Detrended Price Oscillator enters an overbought zone. And then exits from it and closes below the overbought zone.

 

Share on

About Dwipen Gogoi

Dwipen Gogoi, MBA (IB and IT) and PGDFT from Pune. (Technical Analyst of AliceBlue) I am a You Tuber, Blogger and doing Technical Analysis last 10 years in Stock, Commodity and Forex Market. i am creating various trading strategies for day traders, swing traders, scalp traders.

Check Also

Global Economic Data 21st March

The Kiwi Dollar, The economy grew by 0.6%, quarter-on-quarter, in the 4th quarter. In line with …

Leave a Reply

Your email address will not be published. Required fields are marked *