Price Oscillators (PPO)

Categories: Technical Analysis,

Indicator that shows the direction of two separate moving averages either in the form of percentages or points on a graph. Users of price oscillators are able to define preferences such as the ability to define any two time periods that he or she desires. Price oscillators are often compared to MACD without the time restrictions. There are two formulas used to plot price oscillators depending on how the user wants the data to be displayed (points or percentages). To plot percentages one must take the shorter moving average minus the longer moving average and divide it by the longer moving average. This sum must then be multiplied by 100 to determine the percentage. To plot points the user will need to subtract the shorter moving average minus the longer moving average.