DPO Indicator
Platform: MT4 Type: Oscillator Last update: November 27, 2024The DPO Indicator for MT4 analyzes short-term price fluctuactions, excluding the wider trend perspective. This is done on purpose, as this approach allows to extract brief intervals in order to better point the overbought and oversold levels. The abbreviation means Detrended Price Oscillator and that name describes the concept pretty well.
Example chart:
How to use the dpo indicator for mt4?
The first thing to note is that there is no fixed scale, therefore take a look at the active screen and figure relative highest and lowest points. Once you identify them, pay attention to price action that should form reversal pattern.
What’s more, it works succcessfully with trendlines or support and resistance lines. Take a look at chart below and see how the price reacted to yellow support line. There was clear uptrend and each one of these three spots was a good place to enter a long trade.
When it comes to the formula behind this gauge – it’s based on moving average and it;s filtering out cycles longer than the selected moving average period, which is 14 by default and of course it’s customizable in the x_prd field.
Also, it shows only readings for the last 300 bars, but this can be changed in the settings tab as well.
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