Article/Author: Omega Research Inc., 1997

Download: DETRENDEDPRICEOSC.ELA

Category: Indicator > Cycle Analysis

Description:

The Detrend Price Osc indicator is similar to a moving average, in that it filters out trends in prices to more easily identify cycles. The indicator is an attempt to define cycles in a trend by drawing a moving average as a horizontal straight line and placing prices along the line according to their relation to a moving average. It provides a means of identifying underlying cycles not apparent when the moving average is viewed within a price chart.

Usage:

Cycles of a longer duration than the Length (number of bars used to calculate the Detrend Price Osc) are effectively filtered or removed by the oscillator.

INPUTS: PRICE(CLOSE), LENGTH(14); 

VARIABLES: DPO(0); 



DPO = DETREND(PRICE, LENGTH);



IF DPO <> -1 THEN

	PLOT1(DPO, "DETREND OSC"); 

PLOT2(0, "ZEROLINE");