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PPO

Type: ppo • Category: indicators

Description​

Percentage Price Oscillator

Parameters​

NameTypeDescriptionRequiredDefault
dataExpstringprices datano
pricestringPrice field to use to calculate PPOno
fastperiodnumberFast period for PPO calculationno12
slowperiodnumberSlow period for PPO calculationno26
matypenumberMA type for PPO calculationno0

Help​

PPO (Percentage Price Oscillator)

Description​

The Percentage Price Oscillator (PPO) is a momentum indicator used in financial analysis to measure the relationship between two moving averages of a security's price. It is a versatile tool that helps traders and analysts identify trends, buy and sell signals, and potential reversals.

What does this worker do?​

The PPO worker calculates the Percentage Price Oscillator for a given set of price data. It takes the following parameters:

  • dataExp: prices data
  • price: Price field to use to calculate PPO
  • fastperiod: Fast period for PPO calculation
  • slowperiod: Slow period for PPO calculation
  • matype: MA type for PPO calculation

How to interpret the results​

The PPO indicator consists of a line, a signal line, and a histogram. The line represents the difference between the fast and slow moving averages, while the signal line is a moving average of the PPO line. The histogram shows the difference between the PPO line and the signal line.

  • When the PPO line is above the signal line, it indicates a bullish signal, suggesting that the short-term momentum is stronger than the long-term momentum.
  • When the PPO line is below the signal line, it indicates a bearish signal, suggesting that the short-term momentum is weaker than the long-term momentum.
  • A crossover above the signal line can be a buy signal, while a crossover below the signal line can be a sell signal.

Additional Information​

The PPO indicator was developed by Martin Pring, a well-known technical analyst. It is similar to the Moving Average Convergence Divergence (MACD) indicator but uses a percentage calculation instead of a simple subtraction. This makes the PPO more suitable for comparing momentum across different securities.

How to use it​

For a step-by-step guide on how to use the PPO indicator, please refer to the following GIFs:

Full GIF​

[![Full GIF](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)

Short GIF​

[![Short GIF](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)

By following these steps and understanding how to interpret the results, you can effectively use the PPO indicator to make informed trading decisions.