The DPO Bar is short for Detrended Price Oscillator Bar, and it is grouped as an oscillator Metatrader 5 indicator that aids traders remove the trend component of the price movement chart.
The makeup make straightforward the process of determining cycles during price fluctuation along with overbought/oversold levels.
Long cycles are made up of numerous short cycles.
Study of such short components are essential to determining the critical moments of the cycle.
The DPO_Bar MT5 custom forex indicator allows removing the effect of the price on outlook of long-term cycles.
There are two input parameters that are found on the DPO_Bar MT5 indicator:
- Period – defines the MA calculation period
- Method – defines the MA calculation method
The formula that defines the DPO Bar is expressed in a simple form below:
DPO = Price – SMA (Price, N)
The EUR/GBP M30 chart below displays the Detrended Price Oscillator Bar Metatrader 5 forex indicator in action
Basic Trading Signals
Buy Signal: If the bars (starting off as medium sea green) of the DPO_Bar Metatrader 5 forex indicator break above the zero level, it is a trigger to buy the designated forex pair.
Sell Signal: If the bars (starting off as orange) of the DPO_Bar MT5 forex indicator break below the zero level, it is a bearish trend.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, price closes below the zero level of the DPO_Bar Metatrader 5 forex indicator.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, price closes above the zero level of the DPO_Bar Metatrader 5 indicator.
Tip: Any trader can incorporate the DPO_Bar into their trading toolkit, as a means of ramping up profitability.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Period, Method), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the DPO_Bar.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)