Detrended Price OscillatorThe Detrended Price Oscillator (DPO) was described by Steve Achelis in his book “Technical Analysis from A to Z ”. It attempts eliminate the long term trend and find immediate overbought and oversold areas in price.
The formula looks like this DPO = Close – (Moving Average “(N/2 + 1)” Days Ago) By detrending price it is suppose to be easier to determine short term overbought and oversold areas in a given security. When the Detrended Price Oscillator is above 0 it is said to be overbought. When it is below 0 it is said to be oversold. The buy signal is produced when the oscillator moves above 0. The sell signal comes when the oscillator moves below 0. Below is an example of how the indicator appears on a chart. 
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