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Detrended Price Oscillator (DPO)
An oscillator that removes an asset's longer-term trend from price, specifically to highlight shorter-term price cycles.
The Detrended Price Oscillator (DPO) removes an asset's longer-term trend from its price, specifically to make shorter-term price cycles easier to see, by comparing current price to a displaced (shifted back in time) moving average.
Because it deliberately strips out the longer-term trend, DPO is explicitly not designed to be used for identifying a trend's direction — it serves a different, narrower purpose than most other price-based oscillators. See Kaavon's dedicated DPO article for the full calculation.
Examples
- DPO is specifically designed to reveal shorter-term cycles that a longer-term trend would otherwise obscure, not to indicate overall trend direction.
- DPO's displaced moving average comparison is what structurally distinguishes it from most other, non-displaced moving-average-based oscillators.