Detrended Price Oscillator eliminates the trend effect of price movement. This simplifies the process of finding out cycles and levels of outbidding/resale.
Long-term cycles consist of several shorter cycles. Analyzing such short components helps to define crucial moments of the cycle's development. DPO gives a chance to eliminate the influence on prices of long-term cycles.
Calculations:
DPO = Price - SMA (Price,N)