06/01/2026
A detrended price oscillator, used in technical analysis, strips out price trends in an effort to estimate the length of price cycles from peak to peak or trough to trough.
Unlike other oscillators, such as the stochastic or moving average convergence divergence (MACD), the DPO is not a momentum indicator. It instead highlights peaks and troughs in price, which are used to estimate buy and sell points in line with the historical cycle.
If troughs have historically been about two months apart, that may help a trader make future decisions as they can locate the most recent trough and determine that the next one may occur in about two months.
Traders can use the estimated future peaks as selling opportunities or the estimated future troughs as buying opportunities.
The indicator is typically set to look back over 20 to 30 periods.
The indicator is best used in conjunction with these other technical trading methods.
What indicators do you use in your trading strategy? What other indicators do you want to see? Let us know in the comments below!
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