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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.


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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.

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