Indicators: Percentage Price Oscillator Extended
Yes,an other one of your pretty addition - :)
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Percentage Price Oscillator Extended:
The Percentage Price Oscillator Extended (PPO) is a technical Momentum indicator showing the relationship between two Moving Averages. To calculate the PPO, subtract the 26-day Exponential Moving Average (EMA) from the nine-day EMA, and then divide this difference by the 26-day EMA. The end result is a percentage that tells the trader where the short-term average is relative to the longer-term average.
Calculated as:
The PPO and the Moving Average Convergence Divergence (MACD) are both Momentum indicators that measure the difference between the 26-day and the nine-day Exponential Moving Averages. The main difference between these indicators is that the MACD reports the simple difference between the Exponential Moving Averages, whereas the PPO expresses this difference as a percentage. This allows a trader to use the PPO indicator to compare stocks with different prices more easily. For example, regardless of the stock's price, a PPO result of 10 means the short-term average is 10% above the long-term average.
The Extended version introduces a signal line (EMA is used for Signal line calculation too) and that way the signals are a bit faster compared to the basic version.
Author: Mladen Rakic