Skip to main content
Skip table of contents

Percentage Price Oscillator

Type

Other indicator

Short introduction

The percentage price oscillator ("PPO") is a momentum oscillator that calculates the difference between 2 MAs as a percentage of the longer of these MAs.

Statement

By forming the difference, the indicator fluctuates freely upwards and downwards around the zero line. A signal is generated by crossing the zero line. The calculation generally subtracts the longer, "slower" MA from the shorter, "faster" MA.

Formula/calculation

PPO = 100 × ((MAx - MAy) ÷ MAy)

where:

MAx = moving average, shorter time period

MAy = moving average, longer time period

Interpretation

Similar to the MACD, the PPO is positive if the shorter MA is quoted above the longer one. If the shorter MA moves further away from the longer one, this is interpreted positively and vice versa.

Default setting

Depending on the analysed, that is:

  • Short MA: 12 periods
  • Long MA: 26 periods
JavaScript errors detected

Please note, these errors can depend on your browser setup.

If this problem persists, please contact our support.