Registered User
Joined: 10/9/2010
Posts: 18
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I was experimenting with the built-in Detrended Price Oscillator (not the modified version), and noticed it did not include results for the latest values. When I looked closer at the RealCode, I discovered it references negative values in the price.last, referring to future prices. Why is it implemented this way? Is it just trying to show the detrended price? If it doesn't show the latest results, it's not useful as an active indicator.Why are future price references supported in general? It seems dangerous to allow indicators to reference future prices.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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We allow negative references because customer's wanted them. While you can't usefully use them in backtesting, they are useful for displaying certain types of Indicators as they were designed (such as this version of the DPO and Ichimoku Charts).
There is no universal agreement about how to calculate DPO (which is one reason we have two versions available). An extensive exploration of the advantages and disadvantegs of at least some of the methods is given in Detrended Price Oscillator.
-Bruce
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