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.
