Registered User
Joined: 3/8/2008
Posts: 20
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I would like to create a price percentage oscillator for telechart aka ppo indicator it is much like the macd i need the following formats 1,72,18, 1,160,18 and 1,40,18 it is setup like the macd 12,26,9. If you have the formula that would be great.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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How is the indicator calculated? What do your parameters mean? Can you elaborate?
- Craig
Here to Help!
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Registered User
Joined: 3/8/2008
Posts: 20
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Introduction
The Price Oscillator is an indicator based on the difference between two
averages
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. In our charts and commentary, we will use the abbreviation
moving, and is expressed as either a percentage or in absolute terms. The number
PPO
to refer to the Percentage Price Oscillator and APO to refer to the Absolute Price
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Registered User
Joined: 3/8/2008
Posts: 20
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Percentage Price Oscillator (PPO)
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. For exa
This formula displays the difference between the two moving averages as a
percentage of the longer moving average
{(10-period EMA minus 30-period EMA) divided by the 30-period EMA}
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Registered User
Joined: 3/8/2008
Posts: 20
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I read this info and pasted it i think i may have found a previous topic on this thanks
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Registered User
Joined: 1/28/2005
Posts: 6,049
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"1,72,18, 1,160,18 and 1,40,18"
---------------------------------------------
Try:
------------------------------------------
1,72,18
(C-XAVGC72)/XAVGC18
------------------------------------------
1,160,18
(C-XAVGC160)/XAVGC18
------------------------------------------
1,40,18
(C-XAVGC40)/XAVGC18
------------------------------------------
Realize that your symbols will need sufficient
data.
Create a custom indicator and select
"center zero line"
You may be interested in this:
Thanks
diceman
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Registered User
Joined: 1/1/2005
Posts: 2,645
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QUOTE (diceman)
1,72,18
(C-XAVGC72)/XAVGC18
------------------------------------------
1,160,18
(C-XAVGC160)/XAVGC18
------------------------------------------
1,40,18
(C-XAVGC40)/XAVGC18
------------------------------------------
diceman,
Should not the above read:
------------------------------------------
1,72,18
100*(C-XAVGC72)/XAVGC72
------------------------------------------
1,160,18
100*(C-XAVGC160)/XAVGC160
------------------------------------------
1,40,18
100*(C-XAVGC40)/XAVGC40
------------------------------------------
The Signal Line is obtained by placing an Exponential Moving Average of Period 18 on each Custom Indicator using one of the above Indicator Formulas. Check "Center Zero Line". Place an invisible TSV Indicator in the Window to draw the zero line.
Thanks,
Jim Murphy
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Registered User
Joined: 1/28/2005
Posts: 6,049
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bustermu
Your explanation does not match the 10/30
description.
I believe the idea is to create a percentage based
type of MACD. So that "relative" sorts can be
done that are not impacted by price levels.
Thanks
diceman
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Registered User
Joined: 1/1/2005
Posts: 2,645
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QUOTE (diceman) Your explanation does not match the 10/30 description.
diceman,
Thanks for your response.
This is the "10/30" description from above:
{(10-period EMA minus 30-period EMA) divided by the 30-period EMA}
A PCF for this is:
(XAVGC10-XAVGC30)/XAVGC30
I multiplied by 100 to make it a percent. The third EMA is put on this quantity.
I have not been able to find any references to replacing the second EMA in the denominator by the third EMA. Have you?
Thanks,
Jim Murphy
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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diceman,
The description provided by jboogz2000 does not mention the third parameter that I see, but the solution for how this parameter is used as provided by bustermu certainly makes sense if this is supposed to be similar to a MACD. The third parameter is used just like the third parameter of MACD (as a Moving Average Trigger Line for the raw PPO).
In addition, it does seem that bustermu's use of the first two PPO parameters is consistent with the what is shown for PPO 10,30 in the description. PPO 10,30 is described as:
{(10-period EMA minus 30-period EMA) divided by the 30-period EMA}
Which would become the following Personal Criteria Formula:
(XAVGC10 - XAVGC30) / XAVGC30
When this is expressed a a Percentage, the resulting formula would be:
100 * (XAVGC10 - XAVGC30) / XAVGC30
Using the third parameter as the denominator instead of the second (or long parameter) as the denominator would seem to be inconsistent with the description. I could always be wrong, but it makes more sense to me that it would be used as a Moving Average Trigger Line as would be done with MACD. You may wish to review the following:
Understanding MACD
PPO
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 1/28/2005
Posts: 6,049
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I may be confused here.
I thought bustermu was talking about placing
a signal line on the difference.
He is probably talking about placing a
signal line on the complete equation.
(after adjustment for percent)
Thanks
diceman
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Registered User
Joined: 1/1/2005
Posts: 2,645
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QUOTE (diceman) I thought bustermu was talking about placing a signal line on the difference. He is probably talking about placing a signal line on the complete equation. (after adjustment for percent)
diceman,
QUOTE (bustermu) The Signal Line is obtained by placing an Exponential Moving Average of Period 18 on each Custom Indicator using one of the above Indicator Formulas.
Thanks,
Jim Murphy
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