The RSK DPO Indicator

The standard Tradestation DPO (Detrended Price Oscillator) is a very good indicator that can help identify the end of cycles. The limitations of this indicator come partially from the color gradient which is difficult to interpret. The RSK DPO has revealed that the color gradient is actually associated with a numeric value ranging from approximately 65500 to 16.7 million. The value of knowing when these numbers are hit is dependent on the data feed on which the RSK DPO is plotted. We find it especially useful when plotting it on the VIX. ($VIX.X) You can plot this on a Tick chart or a Minute Chart. We favor using a Tick chart of generally no more than 15 ticks.

How To Obtain The Numeric ColorLevel
Insert the RSK DPO on the $VIX.X.

Next use Control + Shift + E and bring up the Print Log

How to Interpret the Numeric ColorLevel
The print log will have the date, time and color level of each bar. When the color level reaches approximately 65000 it’s a good time to buy presuming you are at a relatively new low on the ES. When it reaches 16.7 million it’s a good time to sell presuming you are at a relatively new high on the ES.

10/26/2009 8:35am ColorLevel = 65535.......POSSIBLE LONG
10/26/2009 8:36am ColorLevel = 391679
10/26/2009 8:37am ColorLevel = 1044479
10/26/2009 8:38am ColorLevel = 1631999
10/26/2009 8:38am ColorLevel = 3525119
10/26/2009 8:39am ColorLevel = 5026559
10/26/2009 8:40am ColorLevel = 5614079
10/26/2009 8:41am ColorLevel = 5287679
10/26/2009 8:42am ColorLevel = 8355839
10/26/2009 8:43am ColorLevel = 8355839
10/26/2009 8:43am ColorLevel = 8355839
10/26/2009 8:44am ColorLevel = 8355839
10/26/2009 8:45am ColorLevel = 10771199

10/26/2009 10:02am ColorLevel = 4112639
10/26/2009 10:03am ColorLevel = 7311359
10/26/2009 10:03am ColorLevel = 5744639
10/26/2009 10:04am ColorLevel = 6266879
10/26/2009 10:05am ColorLevel = 3982079
10/26/2009 10:06am ColorLevel = 7964159
10/26/2009 10:06am ColorLevel = 15210239
10/26/2009 10:07am ColorLevel = 13186559
10/26/2009 10:08am ColorLevel = 14296319
10/26/2009 10:09am ColorLevel = 16711935
10/26/2009 10:09am ColorLevel = 16711935..POSSIBLE SHORT

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