Detrending Price Oscillator question

R

rickf

After doing some reading and then experimenting with various technical indicators, I've noticed that the DPO (14 period) is pretty uncanny in helping identify oversold/overbought conditions with greater accuracy than RSI or other indicators. Has anyone else found DPO as a useful indicator for such cases?

Looking back on the ES futures in recent weeks -- if the DPO crosses the oversold/bought line, more often than not it quickly reverses for a nice gain.

Granted there's no holy grail of indicators, and we all need to use what works for us and our trading styles, but is this a fairly good indicator for oversold/bought conditions as compared to RSI, STO, or MACD?
 
DPO is the only indicator I glance at from time to time during the day. Just a confirming factor, nothing else.

In particular I use it on 2m charts, based on 14 periods. And rather than crosses, I look for divergence. I primarily trade YM and ER.

Good trading to you

Osorico :)
 
Quote from osorico:

DPO is the only indicator I glance at from time to time during the day. Just a confirming factor, nothing else.

In particular I use it on 2m charts, based on 14 periods. And rather than crosses, I look for divergence. I primarily trade YM and ER.

Good trading to you

Osorico :)
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Agree --- most indicators are good for confirming, I tend to go by price action.

Same to you! :)
 
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