(Nhaa Momo Oscillator indicator) — a version of the price oscillator based on the difference between the current price and the simple moving average shifted by (Period / 2) + 1 bars. Unlike the stochastic oscillator , this indicator aims to show the short-term trend changes (price waves inside the long-term trend). The indicator is displayed i n the separate window of the chart. You can use this Detrended Price Oscillator (DPO) indicator in MT4 versions of the platform.
trend changes are signaled by the cross of the indicator and the zero level. However, because the indicator is lagging, predicting such crosses can be a better technique. It is not quite a very accurate indicator for direct trading purposes, but it still can be used for short-term trend confirmation.
Another possibility with the Oscillator is to use detect divergences with the price chart. As you can see on the chart below, the major trend reversal could be spotted by comparing the double top demonstrated by the price and the lower high on the chart.
