Weekly E-mails:  Crypto Trading Strategy 5 Weeks of Onboarding Reads. Latest Airdrops (Thu 7 AM EST). Or all of it.

Dismiss   Pick Your Preference
This site uses cookies (More).

 

Script Spotlight: Detrended Price Oscillator (DPO) - #CryptoTrading

The Detrended Price Oscillator strategy tool from TradingView is similar to a moving average, but easier to read.
Blog
  .  Published  · By KarlVonBahnhof

The feature of today’s Script Spotlight is an older tool that is not groundbreaking or super sophisticated but it will make your chart reading faster.

It is called The Detrended Price Oscillator and it is very similar to a simple moving average.

If you don’t have a TradingView account yet, make one here for free.

If you care for high leveraged trading, you’re probably looking for BitMEX as well, keep your cool though.

Detrended Price Oscillator Strategy by HPotter

Full script

//  Copyright by HPotter v1.0 30/03/2017
study(title="Detrended Price Oscillator", shorttitle="DPO")
Length = input(14, minval=1)
Series = input(title="Price", type=string, defval="close")
hline(0, color=green, linestyle=line)
xPrice = close
xsma = sma(xPrice, Length)
nRes = xPrice - xsma
pos = iff(nRes > 0, 1,
	     iff(nRes < 0, -1, nz(pos[1], 0)))
barcolor(pos == -1 ? red: pos == 1 ? green : blue )
plot(nRes, color=red, title="Detrended Price Oscillator")

Parameters: Length (number of timespans to calculate over, default 14) and Price (candle value input, default Close).

What it does: It takes the price values over the chosen span and calculates a standard moving average from them. It then calculates the difference between the price and the SMA: nRes = xPrice - xsma

The resulting line gets plotted below the chart and the chart’s candles are colored red or green depending on whether the value of the difference is positive or negative.

This is what the Detrended Price Oscillator, or DPO, looks like on a 1D BTCUSD chart. (I changed the default colors for clarity)

barcolor(pos == -1 ? orange: pos == 1 ? lime : aqua )

Does it work?

Of course it does work, there’s no rocket science in this one. You can use it on any timeframe and play with the length of the span.

On the 1W DPO gives an easy single-glance information about the market:

Even better, it is worth noting that the information you get from the color changes is equivalent to the cross of the Bollinger Band middle line on Bollinger Bands of the same length.

Here on a 1W chart for the lengths of 28:

For very long-term crypto charts this is actually more convenient that the bbands, if you are only looking for the position of the price relative to the mean.

You’ll notice I had to switch off the auto sizing on the chart because due to the periods of cryptocurrency bubbles, the lower and upper Bollinger bands shoot too far.

It won’t be a very difficult job to add candle coloring for the lower and upper Bollinger band crosses either, by the way.

Bottom Line

The Detrended Price Oscillator is indeed similar to SMAs. The information is presented by coloring the chart candles though, which means you don’t have to squint your eyes at the chart when investigating trend cycles.

A marginal advantage but if you have a chart with no candle-coloring script in place, this would be a good choice.


This review uses a strategy published to the TradingView community.

About the author

Written by KarlVonBahnhof

KarlVonBahnhof also on Reddit, Chris belongs to the crypto trader class of 2013. Located in the Americas most of the time, you're most likely to meet at r/BitcoinMarkets though.

 

Last added to Crypto Airdrops, Bounties & Opportunities
Name Date How to access Official URL Additional Info
DAPPT Airdrop New Opportunity LIVE until 16 July The dapp.com pre-listing airdrop that we published in June is done now and users can withdraw their airdrop rewards. Dapp.com now opened another opportunity to earn money - there is a TRX reward for trading the DAPPT token. How to get money:Sign up on PIEXGO where DAPPT is listed with code 3I2QDP. Make at least one trade on DAPPT/USDT market. PIEXGO will snapshot user holdings every hour before 15:00 (UTC +8). Users will share a total of 30,000 TRX according to proportions of their average daily DAPPT holdings. DAPPT withdrawal PIEXGO exchange
MAXUM Crypto Airdrop As available New deflationary ERC-20 token (with a token burn rate of 2% per transaction). Because the only issue there is with the token ecosystem is inflation, or whatever. Drops for classic shilling (Twitter) and Telegram join. info form
PDATA Bounty Until 7 July PDATA is seeking to increase their brand awareness and would like to reward content producers in their native language with $20 in PDATA tokens in exchange for published articles and or videos. Maximum of 20 submissions. You should fill the pre-signup form ASAP, deadlines just now. info form
Product Protocol ERC20 Airdrop Until 22 Juny 2019 Product Protocol is a opensource protocol for crowdfunding/crowdlending campaigns based on digital assets issuing. Drops up to 18 USD worth of tokens for classic social media engagement. info join
INNOU Crypto Airdrop Limited INNOU is a new digital ecosytem and complete decentralized multimedia app. During their pre-ICO/ICO they are giving away up to 120 tokens (11 USD) for easy social media tasks. The 'Join' link takes you directly to the Telegram airdrop bot. info join
FanEspo Big Competition (ERC20) Regular Fanespo is launching a new promotion contest worth $400 in FAN tokens. Details will pop up on you when you sign up on site. Overall, the eSports platform FanEspo is giving away the total of $1.6 million of tokens in contests. You need to have a FanEspo account, the tokens you get are testnet but they will be transferred into real tokens upon launch. details make acct
Ethereum Card Airdrop Until end of June 2019 The escrow service on Ethereum is giving away up to 100 ETHCD tokens (15 USD) for a signup through referral and social media joins. Sign up with email and in your dashboard click "Join Airdrop". info sign up
Lunox LNX Airdrop Until end of June 2019 A retail marketplace that for some reason uses blockchain technology. Drops ERC20 tokens for social media shilling. info form
Bethereum Photo Contest Until end June 2019 Bethereum, the betting platform on ETH, is giving away prizes in a social media campaign to the platform users who take a photo of the platform in an unexpected place, post it as a comment and hashtag it #BethereumAnywhere Twitter. The monthly prizes of 25K Bether, AND 3 grand prizes of 100K BETHER! join platform photo thread
BlockWage Airdrops + Bounties Recurring Platform for freelancers marketplace. Airdrops randomly announced via Discord, there's also the possibility of Masternodes. join web
BitForex Exchange Launch Promo Limited The new altcoin trading platform is dropping exchange tokens to new signups. You get 20 BF for your signup with code 2178778 and can earn more for referrals, limited at 30k BF. details make acct

More in #: Series SCRIPTSPOTLIGHT

Blog  #trading   10 Jun 2019, 03:42 UTC
Script Spotlight: Detrended Price Oscillator (DPO)
Blog  #trading   29 Jun 2019, 09:14 UTC
Script Spotlight: A/D Levels
Blog  #trading   29 Jun 2019, 09:14 UTC
Script Spotlight: Automatic Divergences