The DZP Trend indicator displays the market state as a detrended oscillator, i.e. the trend component is removed from the price, thus showing a clearer picture of the price movement.
There are four input parameters:
- Period - calculation period;
- Shift;
- Applied price;
- Mode view - display mode:
- Line
- Histogram
Calculations:
DZP = 100*(A-B)
where:
A = (Price - Price(Shift)) / Price(Shift) B = (MA - MA(Shift)) / MA(Shift) Price - SMA(Applied price, 1) Price(Shift) - SMA(Applied price, 1) Shift bars back MA - EMA(Applied price, Period) MA(Shift) - EMA(Applied price, Period) Shift bars back
The indicator has the following specific feature: indicator line reversal, which forms its local extremum, often occurs a little earlier than the price moves towards this reversal. This allow placing a pending order in the desired direction in advance.
Fig. 1. Displayed as a line
Fig. 2. Displayed as a histogram
