Mastering the Detrended Price Oscillator for MT5 Trading

Detrended Price Oscillator (DPO) for MetaTrader 5 — This handy indicator shows the difference between the current price and a simple moving average that's shifted by (Period / 2) + 1 bars. Unlike the stochastic oscillator, the DPO focuses on short-term trend changes, capturing the price waves within the larger trend. You can find it in a separate window on your chart, and it’s available for both MT4 and MT5 platforms.

Input Parameters

MA_Period (default = 14) — This sets the period for the simple moving average used in the DPO.
BarsToCount (default = 400) — This parameter defines how many bars the indicator will calculate.
EnableNativeAlerts (default = false) — When set to true, the indicator will use MetaTrader's native pop-up alerts.
EnableEmailAlerts (default = false) — If true, the indicator will send email alerts. Make sure your email settings are configured in MetaTrader under Tools -> Options -> Email.
EnablePushAlerts (default = false) — When set to true, the indicator will send push notifications. Ensure notifications are set up in MetaTrader under Tools -> Options -> Notifications.
TriggerCandle (default = Previous) — This defines the candle for alerts: Previous for the last closed candle or Current for the ongoing candle.

Trading Strategy

Trend changes are indicated by the DPO crossing the zero level. However, since this indicator tends to lag, predicting these crosses can be more effective. While it may not be the most accurate tool for direct trading, it can still help confirm short-term trends.

Another useful application of the Detrended Price Oscillator is spotting divergences with the price chart. As illustrated in the chart below, significant trend reversals can often be detected by comparing the double top pattern on the price chart with the lower high on the DPO chart.

Mastering the Detrended Price Oscillator for MT5 Trading

Input Parameters

Trading Strategy

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