If you are a trader who loves to take quick trades or short-term trades and you are looking for an indicator that can you suit your trading nature then I have good news for you Detrended Price Oscillator and Bollinger Band is a trend indicator that is especially made for aggressive traders and can help you place high quality quick trades.
Key Points about Detrended Price Oscillator and Bollinger Band on IQ Option
- The Detrended Price Oscillator is a unique trend indicator that helps traders to find quick signals for short-term trades. This indicator filters out the long-term trades and focuses on short-term cycles or the most recent price data.
- The Detrended Price Oscillator has a moving average line that oscillates around a zero line and moves above or below the same. The zero line displays the average price over a selected period, effectively removing the long-term trend components.
- Bollinger Band is a trend indicator that helps us to predict upcoming trends & reversals using three simple moving average lines.
- You can even measure the volatility of security prices using Bollinger Band. when the three bands expand it signals a strong trend meanwhile, a small distance between these bands signals sideways movement.
Unboxing Detrended Price Oscillator and Bollinger Band on IQ Option
To unbox the Detrended Price Oscillator and Bollinger Band on IQ Option => Log in, to your IQ Option first. => Secondly, select your desired chart type from the chart and asset. => Click on the indicator button at the bottom of the page and navigate to the trend tab and select Detrended Price Oscillator from the list. => Lastly, make the necessary changes based on your trading preferences like period or increase the line width for better visibility.
How to recognize trends with Detrended Price Oscillator on IQ Option
Just like many other indicators, Detrended Price Oscillator uses an overbought and oversold level to identify the trend and reversals. When the moving average line rises above the zero line and reaches the upper extreme, It suggests that the market is at the overbought level and signals a strong Bullish trend and you can place a buy trade here.
Similarly, When the moving average line rises above the zero line and reaches the lower extreme, It suggests that the market is at the oversold level and signals a strong bearish trend and you can place a sell trade here.
Confirm your trades with Bollinger Bands
Once you have found the Detrended Price Oscillator now it’s time to confirm your trades with Bollinger Bands. when you found a bullish trend with DPO and Price is touching the upper band it signals a strong Bullish trend and you can consider placing a buy trade here and vice versa when you found a bearish trend with DPO and the Price is touching the lower band it signals a strong Bearish trend and here, you can consider placing a sell trade