How to make money in stock market by using the Detrended Price Oscillator

The key significance of the DPO is to identify the price cycle. The idea is to capitalize on the short-term trend, based on the past performances.

Detrended Price Oscillator (DPO) was developed to identify the cyclical change in equities by eliminating the overarching trend from the price action. This is done by comparing the past price by a displaced simple moving average (SMA). Herein, instead of concentrating on the broad outlook of a trend, intermediate peaks and trough, based on the past price action, provide significant triggers.

The indicator is plotted on the scale of zero line. Whenever the price moves above the SMA, the indicator will trade above or below the zero indicator. This assists in determining the change in trend. When the indicator