Detrended Price Oscillator (DPO)

The Detrended Price Oscillator (DPO) is a technical indicator used in trading analysis to identify cycles in price movements. It is calculated by removing the moving average from the price data and plotting the result. The DPO shows the difference between the price and a specific moving average, typically the simple moving average (SMA), which is used to filter out the longer-term trends.

DPO is used to identify market cycles, as it removes the long-term trend from the price data. This allows traders to identify shorter-term cycles and predict potential reversals in price. When the DPO crosses above or below the zero line, it can indicate potential buying or selling opportunities, respectively. Additionally, when the DPO crosses above or below a signal line, it can be used as a confirmation of a trend reversal.

Trading bots like HaasOnline can use DPO as one of the indicators in their strategy. For example, a bot may be programmed to enter a long position when the DPO crosses above the zero line and exit the position when the DPO crosses below the signal line. This can help the bot to take advantage of shorter-term market cycles and potentially increase profits.