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Percent Price Oscillator (PPO)

Description

The Percent Price Oscillator (PPO) is based on the differences between two moving averages of different lengths, a ‘Fast’ and a ‘Slow’ moving average. The PPO is the difference of the two averages divided by the slower of the two moving averages, which tends to normalize the values across different instruments.

Formula

PPO = ( ( FastMA - SlowMA ) / SlowMA ) * 100

Where:

  •  FastMA is the shorter moving average and SlowMA is the longer moving average.
  • When the FastMA is greater than the SlowMA, the PPO is a positive number, and when the FastMA is lower than the SlowMA, the PPO is a negative value.
Example