How can you use DPO to identify trends and cycles?

由人工智能和领英社区提供技术支持

Technical analysis is the art of using past price movements and patterns to forecast future trends and cycles in the market. One of the tools that can help you do this is the Detrended Price Oscillator (DPO), a momentum indicator that removes the long-term trend from the price data and reveals the underlying cycles. In this article, you will learn how to use DPO to identify trends and cycles and improve your trading decisions.

此文章中的业界达人

由社区从 13 条内容中精选。了解更多

Nathan Anneh

Futures Trader at Topstep | CEO, ANNEH CAPITAL LLC
Ruben Heng - Overall Wellness Coachapist

19x LinkedIn Top Voice ?? | Overall Wellness Coachapist, Financial Navigator Expert, Introspective Bedtime Storyteller,…
Ram Prakash

Derivatives Trader

1 What is DPO?

DPO is an indicator that measures the difference between the current price and a shifted moving average. The moving average is shifted back by a certain number of periods, usually half of the cycle length, to align it with the peaks and troughs of the price oscillations. The DPO value shows how much the current price deviates from the shifted moving average, which represents the trend. A positive DPO value indicates that the price is above the trend, while a negative DPO value indicates that the price is below the trend.

添加您的观点

Nathan Anneh

Futures Trader at Topstep | CEO, ANNEH CAPITAL LLC
举报内容
The Detrended Price Oscillator (DPO) helps identify trends and cycles by eliminating the overall trend from historical price data. Choose a period aligned with the cycle length of interest, and observe peaks and troughs in DPO values for potential turning points. Confirm trends by analyzing the relationship between DPO and its moving average. Use divergence analysis and adjust the DPO period based on market conditions. Apply risk management strategies, and always corroborate DPO signals with other indicators and price action for a comprehensive analysis.

已翻译

赞
Ram Prakash

Derivatives Trader
举报内容
Utilize Days Payable Outstanding (DPO) to discern trends and cycles in business. Increasing DPO may signal improved vendor negotiations or stretched payment terms, impacting liquidity positively. Conversely, decreasing DPO may highlight operational inefficiencies or financial stress. Regularly analyze DPO alongside industry benchmarks for insights into cash flow patterns, supplier relationships, and potential economic shifts. Monitoring DPO trends enables proactive financial management and strategic decision-making. #FinancialAnalysis #CashFlow #BusinessTrends

已翻译

赞
Lucas Fonseca

Consultor | Financial Planning | Business Development | Management | Strategy | BSC | Financial Market | Bilingual
举报内容
Em resumo, o DPO (Days Payable Outstanding) é uma métrica financeira que mede o tempo médio que uma empresa leva para pagar suas contas pendentes.

已翻译

赞

加载更多内容

2 How to calculate DPO?

To calculate DPO, you need to choose a cycle length that matches the periodicity of the price data. For example, if you are using daily data and you want to capture the 20-day cycle, you can use 20 as the cycle length. Then, you need to calculate a simple moving average (SMA) of the price for the same cycle length. Next, you need to shift the SMA back by half of the cycle length, or 10 periods in this case. Finally, you need to subtract the shifted SMA from the current price to get the DPO value. The formula for DPO is: DPO = Price - SMA(Price, Cycle Length)[Shifted by Half of Cycle Length]

添加您的观点

Lucas Fonseca

Consultor | Financial Planning | Business Development | Management | Strategy | BSC | Financial Market | Bilingual
举报内容
Cálculo do DPO: Utilize a fórmula do DPO, que é (Contas a Pagar / Custo das Vendas) * Número de Dias no Período. Isso indicará quantos dias, em média, a empresa leva para pagar suas contas.

已翻译

赞

加载更多内容

3 How to interpret DPO?

DPO can help you identify trends and cycles by showing you the direction and strength of the price momentum. You can use DPO to look for zero crossings, peaks and troughs, and divergences. For example, when DPO crosses above zero it indicates a bullish momentum, and when DPO crosses below zero it indicates a bearish momentum. Peaks and troughs can be used to anticipate turning points, while divergences can be used to confirm or reject trend breaks or continuations. By understanding these signals, you can enter or exit trades in the direction of the trend or trade counter-trend or swing trades.

添加您的观点

Ruben Heng - Overall Wellness Coachapist

19x LinkedIn Top Voice ?? | Overall Wellness Coachapist, Financial Navigator Expert, Introspective Bedtime Storyteller, and Keynote Speaker
举报内容
Personally, I'm not a fan of using indicators to tell me which direction price action is going to take the asset class to but if you want an idea or confirmation bias, DPO can give you an idea of what cycles are happening at the moment by calculating the difference between the closing price and a displaced moving average. - If the crossings are above the zero lone, it's a suggestion of a bullish bias. Vice versa if below. - The peaks and troughs represent potential cycles. - Same concept applies for every other oscillator out there; if the oscillator's movement shows an opposite of what's happening on the charts, that's a divergence. So that's a useful method to identify trend reversals and understanding the current volatility.

已翻译

赞
Lucas Fonseca

Consultor | Financial Planning | Business Development | Management | Strategy | BSC | Financial Market | Bilingual
举报内容
Análise ao Longo do Tempo/Períodos: Analise os dados do DPO ao longo de vários períodos para identificar tendências. Se o DPO estiver aumentando, a empresa pode estar estendendo o prazo de pagamento, indicando uma gest?o mais eficiente do capital de giro. Se estiver diminuindo, pode sugerir uma gest?o mais agressiva de pagamentos.

已翻译

赞

加载更多内容

4 How to use DPO with other indicators?

DPO can be used with other indicators to enhance technical analysis and trading strategies. For instance, combining DPO with trend indicators, such as moving averages, trend lines, or channels, can help confirm the direction and strength of the trend and identify trend-following or trend-reversal opportunities. Additionally, combining DPO with oscillators, like RSI, Stochastic, or MACD, can compare the price momentum and identify divergences, convergences, or overbought/oversold conditions. Lastly, using DPO with volume indicators, like OBV, Chaikin Money Flow, or On Balance Volume can measure buying and selling pressure and validate price movements and cycles.

添加您的观点

Ruben Heng - Overall Wellness Coachapist

19x LinkedIn Top Voice ?? | Overall Wellness Coachapist, Financial Navigator Expert, Introspective Bedtime Storyteller, and Keynote Speaker
举报内容
I wouldn't exactly rely on combining it with an RSI indicator because seeing the 'overbought/oversold' areas isn't accurate all the time because price action can still rocket up/down if it wants to. So I tend to rely on using multiple SMAs (20/50/100/200) along with an indicator (like DPO) to show me the divergences. From there, I'll line up the divergences to the areas of the SMA(s) to make a decision on where to look to enter.

已翻译

赞

加载更多内容

5 How to optimize DPO settings?

DPO settings can be adjusted to suit your trading style and objectives. The main setting that you need to consider is the cycle length, which determines the frequency and amplitude of the DPO oscillations. The cycle length should match the periodicity of the price data that you are analyzing. For example, if you are using daily data and you want to capture the 20-day cycle, you can use 20 as the cycle length. However, if you are using hourly data and you want to capture the 4-hour cycle, you can use 4 as the cycle length. The cycle length can also vary depending on the market conditions and the time frame that you are trading. You can use trial and error or historical analysis to find the optimal cycle length for your DPO.

添加您的观点

Lucas Fonseca

Consultor | Financial Planning | Business Development | Management | Strategy | BSC | Financial Market | Bilingual
举报内容
1 - Relacionamento com Ciclos Econ?micos: Considere eventos econ?micos globais ou setoriais que possam influenciar o DPO. Por exemplo, em períodos de recess?o, as empresas podem buscar estender seus prazos de pagamento para preservar o capital de giro. 2 - Compara??o com Setor e Concorrentes: Compare o DPO da empresa com a média do setor e de concorrentes para ter uma vis?o mais ampla das práticas do mercado.

已翻译

赞

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

加载更多内容

Technical Analysis

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

How can you use DPO to identify trends and cycles?

1

2

3

4

5

6

1 What is DPO?

2 How to calculate DPO?

3 How to interpret DPO?

4 How to use DPO with other indicators?

5 How to optimize DPO settings?

6 Here’s what else to consider

Technical Analysis

给文章评分

感谢您的反馈

更多Technical Analysis相关文章

更多相关阅读内容

How can you use DPO to identify trends and cycles?

1

2

3

4

5

6

1 What is DPO?

2 How to calculate DPO?

3 How to interpret DPO?

4 How to use DPO with other indicators?

5 How to optimize DPO settings?

6 Here’s what else to consider

Technical Analysis

给文章评分

感谢您的反馈

查看其他技能