Detrended Price Oscillator

Used to isolate short-term cycles, Detrended Price Oscillator compares closing price to a prior moving average, eliminating cycles longer than the moving average.

The real power of the Detrended Price Oscillator is in identifying turning points in longer cycles:

• When Detrended Price Oscillator shows a higher trough - expect an upturn in the intermediate cycle;

• When Detrended Price Oscillator experiences a lower peak - expect a downturn.