PERCENTAGE PRICE OSCILLATOR (PPO)

  
Percentage Price Oscillators (PPO) is derive by subtracting Longer moving average from the smaller moving average and then dividing by longer moving average.

The Percentage Price Oscillators (PPO) is almost identical to the MACD.

Description :

The Percentage Price Oscillators (PPO) is represents two moving averages relative to each others. It’s generates buy signals when shorter term moving average cross above longer term moving average.

The PPO Histogram shows the difference between the PPO and 9-days EMA (exponential moving average) of the PPO. Increases in the PPO histogram represents  the bullish momentum is strengthening and  declines in PPO Histogram represents bearish momentum is strengthening.  All crossover above or below the center line indicates shorter moving average crossing above or below the longer moving average and that’s a buy or sell signal..

How to Calculate?

 {[ ( Shorter Moving Avg ) – ( Longer Moving Avg ) ]/ (Shorter Moving Avg)}*100





To get good result with Percentage Price Oscillators (PPO) we need to use it with other technical indicatores like Moving Average (MA) | On Balance Volume (OBV) | Price Rate Of Change (ROC) | Relative Strength Index (RSI) | Stochastic Oscillator (STO) | Commodity Channel Index (CCI) | Chaikin Money Flow oscillator (CMF). When we use two or three technical indicators and in case of positive divergence and negative divergence it giving real good result, only you need to change time span and find out which is a better pair for you.