Detrended Price Oscillator (DPO)
Info
The Detrended Price Oscillator (DPO) is a Indicator for MetaTrader 5 that the detrended price oscillator (dpo) is a technical indicator that eliminates the trend effect of price movement, making it easier to identify cycles and overbought/oversold levels. Long-term cycles are composed of multiple shorter cycles.
Usage
This tool is typically used for trend following strategies across multiple currency pairs.
Platform
This Indicator works exclusively on MetaTrader 5 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL5/Indicators folder via File ? Open Data Folder in MetaTrader 5.
How to Install and Use Detrended Price Oscillator (DPO)
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
What this tool does
The Detrended Price Oscillator (DPO) is a technical indicator that eliminates the trend effect of price movement, making it easier to identify cycles and overbought/oversold levels.
Typical Use Case
This Indicator excels in trend following on MetaTrader 5.
Compatible Platform & Setup
This Indicator works on MetaTrader 5. Place the file in the MQL5/Indicators folder and restart the terminal.
Description & Settings
Related: Price Channel Indicator - another powerful indicator for MetaTrader 5 traders.
The Detrended Price Oscillator (DPO) is a technical indicator that eliminates the trend effect of price movement, making it easier to identify cycles and overbought/oversold levels.Also recommended: Kinematic Price Physics: Velocity and Acceleration Indicators - similar indicator with strong performance on MetaTrader 5.
Long-term cycles are composed of multiple shorter cycles. Analyzing these shorter cycles provides insights into critical stages of the cycle's progression. The DPO enables traders to isolate the impact of shorter cycles by removing the influence of longer-term cycles.
To calculate the DPO, a specific period is selected, and cycles longer than this period are removed from the price data, leaving only the shorter cycles. Half of the cycle's length is used for smoothing, and it is advisable to use a period of 21 or less.
Overbought and oversold levels are determined based on historical price behavior. A long position is recommended when the DPO drops below the resale level and then rises above it. Additionally, when the DPO crosses the zero point from above and subsequently rises above that level, it signals a potential opportunity to open a long position. The opposite is true for short positions.
Calculation:
DPO = CLOSE - SMA (CLOSE, (N / 2 + 1))
where:
- SMA: Simple Moving Average
- CLOSE: Closing price
- N: Period of the cycle (if N is 12, DPO corresponds to the DiNapoli Detrend Oscillator).
You may also like: Institutional Kalman Filter: Dynamic True Price Estimation - excellent alternative for indicator users on MetaTrader 5.
⚠ Limitations & Risk Warning
- This tool is provided for educational and testing purposes only.
- Past performance does not guarantee future results.
- Trading involves substantial risk of loss. Use on a demo account first.
- Results may vary depending on market conditions, broker, and settings.
- We recommend thorough backtesting and forward testing before using with real funds.