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Thursday, 11/27/2014 6:43:49 AM

Thursday, November 27, 2014 6:43:49 AM

Post# of 821321
The Detrended Price Oscillator (DPO) measures the difference between a past price and a moving average. Keep in mind that DPO is itself displaced to the left. The indicator oscillates above/below zero as prices move above/below the displaced moving average. Chart 2 shows the S&P 500 ETF (SPY) with a 20-day moving average displaced -11 days. 20-day DPO is shown in the indicator window. Notice how DPO is positive when price is above the displaced moving average and negative when price is below the displaced moving average.

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