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

{(10-period EMA minus 30-period EMA) divided by the 30-period EMA}

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