Detrending Price Oscillator question

Discussion in 'Technical Analysis' started by rickf, Jan 4, 2008.

  1. rickf

    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?
     
  2. 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 :)
     
  3. rickf

    rickf

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

    Same to you! :)