DEFINITION of 'Detrended Price Oscillator (DPO)'
An oscillator that strips out price trends in an effort to estimate the length of price cycles from peak to peak, or trough to trough. Unlike other oscillators, such as the Stochastic or MACD, detrended price is not a momentum indicator. It highlights peaks and troughs in price, which are used to estimate entry and exit points in line with the historical cycle.Â
Calculation: Price (X/2 + 1) periods ago minus Xperiod simple moving average
Where X is the number of periods; 20 or 30 periods is common.
BREAKING DOWN 'Detrended Price Oscillator (DPO)'
The cycles are created because the indicator is displaced back in time. The chart below shows the indicator does not appear at the far right of the chart, and is therefore not a realtime indicator. The historical peaks and troughs in the indicator provide approximate windows of time when it is favorable to look for entries and exits, based on other indicators or strategies.Â
In the example below, stock in Armonk, N.Y.based International Business Machines (NYSE:IBM) is bottoming approximately every 1.5 to 2.0 months. Upon noticing the cycle, look for buy signals that align with this time frame. Peaks in price are occurring every 1.0 to 1.5 months look for sell/shorting signals that align with this cycle.
Source: Stockcharts.com

Trough
The stage of the economy's business cycle that marks the end ... 
Peak
The highest point between the end of an economic expansion and ... 
Uptrend
Describes the price movement of a financial asset when the overall ... 
Expansion
The phase of the business cycle when the economy moves from a ... 
Cyclical Risk
The risk of business cycles or other economic cycles adversely ... 
Downtrend
Describes the price movement of a financial asset when the overall ...

Technical Indicators
Detrended Price Oscillator Trading Strategies (FSLR, TLT)
The detrended price oscillator (DPO) offers a simple approach to cycle analysis, removing momentum and longterm trends from the equation. 
Economics
Adjusting Holding Periods To Market Cycles (AAPL, GLD)
Holding periods should be established after analysis of market cycles, to determine the most advantageous timing for entries and exits. 
Trading Strategies
Beginner's Guide To Stockcharts.com: Indicators
Indicators are calculations based on price and volume history of a ticker. There are many different indicators, each with a unique formula used to measure such things as volatility, momentum, ... 
Professionals
Business Cycle
NASAA Series 65: Section 15 Business Cycle. This section explains the different phases of a business cycle. 
Professionals
Business Cycles
Business Cycles 
Insurance
Exploring Oscillators and Indicators: Stochastic Oscillator
By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The stochastic oscillator is another wellknown momentum indicator used in technical analysis. The idea behind this indicator ... 
Professionals
The Business Cycle
The Business Cycle 
Trading Strategies
Technical Analysis: Indicators And Oscillators
By Cory Janssen, Chad Langager and Casey MurphyIndicators are calculations based on the price and the volume of a security that measure such things as money flow, trends, volatility and momentum. ... 
Economics
Macroeconomics: The Business Cycle
By Stephen Simpson The business cycle is the pattern of expansion, contraction and recovery in the economy. Generally speaking, the business cycle is measured and tracked in terms of GDP and ... 
Charts & Patterns
MACD And Stochastic: A DoubleCross Strategy
The stochastic oscillator and the moving average convergence divergence (MACD) are two indicators that work well together.

What are common strategies traders implement when using Detrended Price Oscillator ...
Learn how to calculate the detrended price oscillator, and how traders use this tool to identify price cycles in securities ... Read Answer >> 
Why is the Detrended Price Oscillator (DPO) important for analysts and traders?
Find out how traders and analysts use the detrended price oscillator to locate overbought and oversold positions by eliminating ... Read Answer >> 
What is the Detrended Price Oscillator (DPO) formula and how is it calculated?
See how analysts and traders attempt to estimate the length and depth of current price cycles through the Detrended Price ... Read Answer >> 
How do you know where on the oscillator you should make a purchase or sale?
Learn more about oscillator indicators, technical momentum measures that are used by traders to predict potential market ... Read Answer >> 
Why is the Ultimate Oscillator important for traders and analysts?
Understand the thinking behind the design of the ultimate oscillator and learn the primary trading signals that it generates ... Read Answer >> 
How do I use Stochastic Oscillator to create a forex trading strategy?
Learn about the stochastic oscillator and how to it is used to create an effective forex trade strategy, including how to ... Read Answer >>