Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Detrended Price Oscillator (DPO)
Template
C - AVGCx.y
Where x is the period of the Detrended Price Oscillator (DPO) indicator.
Where y is the period divided by two plus one rounded up (ceiling(x / 2) + 1).
Example
An Indicator Formula for a 21 period Detrended Price Oscillator (DPO) can be written as follows.
C - AVGC21.12
Related Topics
-Bruce
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Registered User
Joined: 6/18/2016
Posts: 7
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Quote from ?Bruce: Example: An Indicator Formula for a 21 period Detrended Price Oscillator (DPO) can be written as follows.
C - AVGC21.12
Question: My understanding is that AVGC21.12 would give the SMA of Close for the period from 33 to 12 days ago. Is this correct?
I thought that DPO21 uses the Close for the date of calculation divided by the SMA for the period extending from 10 days earlier to 10 days later than the date of calculation. Therefore DPO21 can be displayed only up to 11 days ago.
I think that a "strict" formula would look more like C.11 - AVGC21, and this would give the DPO value 11 days ago.
If you want to calculate a DPO value for TODAY you would have to use a "relaxed" formula, eg C - AVGC21. This would give a different value, but might be a more practical formula to use.
Q1: Is my understanding correct or am I very wrong??
Q2: When I add a DPO plot using TC2000 the display extends to the current date. This would suggest that TC2000 uses a "relaxed" formula. Please explain!
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Registered User
Joined: 1/28/2005
Posts: 6,049
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AVGC21.12
Is the value of a 21 period simple moving average 12 bars ago.
For some reason there is more than one version of DPO out there.
(My guess: folks not knowing what "detrending" is)
I would call what Bruce supplied, most popular/most logical.
Thanks
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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The Detrended Price Oscillator topic explores different DPOs in significant detail. The formula in the post is specifically designed to match the version built into TC2000.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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