Detrended Synthetic Price Indicator MetaTrader 4 - Free Download [TradingFinder]

The Detrended Synthetic Price Indicator was developed by John Ehlers, with the goal of removing long-term trends from price charts to focus on short-term cycles. In other words, this trading tool detrends price data, making it possible to analyze reversals and overbought/oversold conditions over shorter timeframes.

Additionally, the output of the indicator is displayed as a colored histogram at the bottom of the chart.

Detrended Synthetic Price Indicator Table

The general specifications of the Detrended Synthetic Price Indicator are presented in the table below.

Detrended Synthetic Price Indicator at a Glance

The Detrended Synthetic Price Oscillator (DSP) is a tool that removes long-term price trends from data and analyzes short-term market fluctuations. This tool usually applies filters such as the Hilbert Filter or Linear Regression to separate price trends and then displays only oscillatory changes as follows:

• Displaying green lines is considered a signal of short-term bullish trends;
• Displaying red lines indicates short-term bearish trend changes.

Note: This oscillator is specifically used to simulate market fluctuations without the impact of long-term trends.

Indicator in a Bullish Trend

The chart below shows the Euro vs British Pound (EUR/GBP) on the 15-minute timeframe.

The appearance of green lines in the DSP oscillator represents positive fluctuations or a bullish trend. When these green lines appear consecutively with an upward slope, it indicates the beginning of a bullish trend and creates a favorable zone for entering buy trades.

Indicator in a Bearish Trend

The chart below shows the Nasdaq 100 (NAS100) on the 4-hour timeframe. The appearance of red lines at the bottom of the chart indicates a short-term bearish trend. In this oscillator, red lines represent negative market changes and reflect price declines within a given period.

Detrended Synthetic Price Settings

The image below shows the settings panel of the Detrended Synthetic Price Oscillator:

• DSP period: Calculation period for the DSP parameter
• DSP price: Calculation of the median DSP price
• Signal period: Signal period calculation
• Change color on: Color change based on settings

Conclusion

The Detrended Synthetic Price Oscillator (DSP) is a useful tool in technical analysis that removes the effects of long-term trends from price data. This tool focuses on short-term market fluctuations and provides more precise signals of real-time price changes.