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Category Name: Trading Technicals
 
» Sub-Category Name: Charting
 
 
Percentage Price Oscillator
By: vss2000.com

Percentage Price Oscillator ( PPO )


An indicator which attempts to assess the momentum of price activity by the use of two or more moving averages, for a predefined time frame period.

The number of time periods can vary depending on user preference. For daily data, longer moving averages might be preferred to filter out some of the randomness associated with daily prices. For weekly data, which will have already filtered out some of the randomness, shorter moving averages may be deemed more appropriate. In addition, a moving average of the ensuing plot can be overlaid to act as a trigger line, much like is done with MACD.

The Percentage Price Oscillator is found by subtracting the longer moving average from the shorter moving average and then dividing the result by the longer moving average.

 

 

 
 

 

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