Type
Other indicator
Short introduction
The Absolute Price Oscillator ("APO") is a version of the MACD, showing the difference between two exponential MAs.
Statement
The MACD determines the delta of 2 MAs. However, the two MAs are always calculated on an exponential basis. Thus, it oscillates around the zero line. Values crossing above zero are considered bullish, while crossing below zero are bearish.
Formula/calculation
APO = short (exponential) MA - long (exponential) MA
Interpretation
If the APO is above 0, that is, the short MA is above the longer one, then this indicates upward trends, while negative values indicate a downward trend.
Default setting
-
Period: 9 periods