InvestorQ : How does the DPO indicator work and how can it be used to reinforce our calls on the market?
Rutuja Nigam made post

How does the DPO indicator work and how can it be used to reinforce our calls on the market?

Answer
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Arti Chavan answered.
1 year ago


DPO is used to identify cycles with its peaks and troughs. Cycles can be estimated by counting the periods between peaks or troughs. Users can experiment with shorter and longer DPO settings to find the best fit. The formula for DPO is as under:

DPO = Close (n/2 + 1 Periods ago) – n Period SMA

These indicators are not used too frequently as markets like India may not always adhere to such sophisticated statistical models.