Barchart.com
Less than $10/month! View ALL results for your Stocks, ETFs and Funds Screeners with Barchart Plus. FREE 30 Day Trial
Menu
alerts false
Stocks | Futures | Watchlist | News | More
 
Advanced search
or
Watchlist | Portfolio | Dashboard
Site News
Contact
Market:
Learn Menu

Learn

Technical Indicators

Fri, Jun 6th, 2025
Go To:
The descriptions, formulas, and parameters shown below apply to both Interactive Charts and Snapshot Charts, unless noted. Please note that some of the parameters may be slightly different between the two versions of charts.
Studies noted with * are available only in Snapshot Charts and those noted with ^ are available only in Interactive Charts.
Previous
Next
Please wait...

Detrended Price Oscillator

Indicator Type: Standalone - Interactive Charts only

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.

Sample Chart:

Detrended Price Oscillator

Calculation

To calculate the Detrended Price Oscillator:

  1. Decide on the time frame that you wish to analyze. Set n as half of that cycle period.
  2. Calculate a simple moving average for n periods.
  3. Calculate    (n / 2 + 1)
  4. Subtract the moving average, from (n / 2 + 1) days ago, from the closing price:

                DPO = Close - Simple moving average [from (n / 2 + 1) days ago]

Parameters

  • Period (20) - The number of bars on the chart.

Trading Signals

First, estimate the maximum length of the cycle that you wish to track. Use half of the cycle length as the MA period. The Detrended Price Oscillator is most effective with indicator periods of 21 days or less.

Ranging Markets

Set overbought and oversold levels based on observation of past price behavior.

  • Go long when Detrended Price Oscillator crosses below and then back above the oversold level.
  • Go short when Detrended Price Oscillator crosses above and then back below the overbought level.

Use stop-losses at all times.

Trending Markets

Only trade in the direction of the trend.

  • Go long when Detrended Price Oscillator crosses below zero and then turns back above.
  • Go short when Detrended Price Oscillator crosses above zero and then turns back below.

Only execute trades if the trend is intact (price does not close below the MA). Exit using a trend indicator.

Use stop-losses to protect your position.

Alternative (and more aggressive) rules:

  • Go long when Detrended Price Oscillator forms a higher trough.
  • Go short when Detrended Price Oscillator forms a lower peak.

Trade only in the direction of the trend and always use stop losses.

Want to use this as
your default charts setting?
Save this setup as a Chart Templates
Switch the Market flag
for targeted data from your country of choice.
Open the menu and switch the
Market flag for targeted data from your country of choice.
Want Streaming Chart Updates?
Switch your Site Preferences
to use Interactive Charts
Need More Chart Options?
Right-click on the chart to open the Interactive Chart menu.
Use your up/down arrows to move through the symbols.
Free Barchart Webinar
The Coil Before the Break: How to Spot and Trade Long-Term Consolidation Patterns
Wed, Jun 11, 2025 5:00 PM UTC
Reserve Your Spot