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This study calculates and displays a Detrended Oscillator for the Price Data.

Let \(C_t\) be the value of the Close Price at Index \(t\), and let \(n\) be the Length Input. We define two quantities \(N^{(1)}(n)\) and \(N^{(2)}(n)\) and compute them as follows.

For an explanation of the floor function (\(\left\lfloor{\space\space}\right\rfloor\)), refer to our description here.

The Detrended Oscillator at Index \(t\) is denoted as \(DO_t(n)\), and it is computed in terms of a Simple Moving Average for \(t \geq n\) as follows.

Note: Depending on the setting of the Moving Average Type Input, the Simple Moving Average in the above formula could be replaced with an Exponential Moving Average, a Linear Regression Moving Average, a Weighted Moving Average, a Wilders Moving Average, a Simple Moving Average - Skip Zeros, or a Smoothed Moving Average.

This study also displays horizontal lines at levels determined by the Overbought Level and Oversold Level Inputs.