Detrended Price Oscillator removes the trend in prices by subtracting a moving average of the price from the price.
It is among the few studies which uses current value EMA to be used with to subtract from certain bar previous price to give over bought and sold situations
Interpretation
It helps to identify small minor price cycles which are part of major long term price cycle
Default Parameters Used/Inputs
Close Line
Bars
Returns/Output
DPO values of stock for the specified period
Formula
DPO = Price(i) – EMAn
Where, i = [(n/2) +1] previous bars
