The detrended price oscillator (DPO) aims to eliminate an intermediate or long term trend and show variations around that trend. It’s calculated on a given N days using today’s close and a past simple moving average (see Simple Moving Average),
DPO = close - SMA over N days, as at N/2+1 days ago
This is somewhat similar to momentum (see Momentum), but instead of taking the close N days ago, an average (the SMA) of N days surrounding that point is used.
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