Price Oscillator - This indicator is based on the difference between two Moving averages, and expressed as a percentage or in absolute values. Price oscillator, expressed in percentages, respectively, called the percentage price oscillator (PPO - Percentage Price Oscillator), a price oscillator, expressed in absolute values, is called the Absolute Price Oscillator (ACO - Absolute Price Oscillator). The number of time periods may vary depending on the preferences of the user. For daytime schedules may be preferred over long sliding average to filter out of the "market noise" associated with daily price movements. For weekly charts, which are already filtered, part of the "market noise", can be considered more appropriate for shorter Moving averages. It may also be imposed subsequent rolling average for use as a pulse line, just as in indicator MACD.
Absolute Price Oscillator (APO)
Absolute Price Oscillator (APO) is calculated by subtracting the longer moving average from the shorter moving average. See picture number 1
10 - periodnaya Exponential Moving Average (EMA) minus 30 - periodnaya Exponential Moving Average (EMA)
The values and form a line of an oscillator that fluctuates above and below zero, according to the difference in moving averages. If a short Moving Average is above a long moving average, the indicator will be positive. If a shorter rolling average is below the longer moving average, the indicator will be negative.
Indicator MACD, which is calculated as the difference between two exponential sliding average, is essentially the equivalent of APO. And if the software used for graphic display of price data, there is no indicator of APO, then you could easily be used an indicator MACD.
Percentage Price Oscillator (PPO)
Percentage Price Oscillator is calculated by subtracting the longer moving average from the shorter moving average and then the result is divided by the value of a long moving average. See picture number 2
(10 - periodnaya EMA minus 30 - periodnaya EMA) divided by 30 - periodnuyu EMA
This formula shows the difference between the two sliding average as a percentage of the longer moving average.
Absolute or percentage
Percentage Price Oscillator (PPO) and the Absolute Price Oscillator (APO) is served almost the same signals and are essentially the same form. All crossing the median line, as well as the crossing, which occurs when a short Moving Average crosses above or below the longer Moving averages come in one at the same time. However, because the PPO is calculated on the basis of per cent, the form of his lines may differ little, but important nuances of the form of lines of APO. Below is a schedule of the index "Nasdaq Composite", which illustrates some of the differences that may arise unexpectedly.
1. The green circle indicates that the PPO has formed boleenizky a maximum in December, while the APO has formed a higher maximum.
2. Later in December, APO continue higher, and PPO started smoothed. (red arrows) 3. In early January, PPO showed a lower minimum, which was one day earlier than the APO.
There are two main reasons to use the Price Oscillator Percentage rather than absolute price oscillator.
1. In the case with the percentage price oscillator, it is possible to compare the price levels of the oscillator between the two market-based instruments. Value PPO +5% means that over a short Moving Average of 5% higher than the longer moving average cost. The value per cent is comparable with other market-based instruments, regardless of the price of the instrument. Percentage Price Oscillator (PPO) for the SLB has reached only 3% of their peaks, while the index "Nasdaq Composite" rose above 7%.
2. Percentage Price Oscillator provides a better balance between the two moving average cost. The difference between two Moving averages shown on the shorter moving average. This allows you to compare values between the periods of time, regardless of the price of market-based instruments. In the case of the absolute price oscillators, the higher the price of market-based instruments, the greater the extremes oscillator. With the percentage price oscillator compare shares "Amazon" after a certain time, perhaps regardless of where the stock price in the region of 10 or 100.
PPO - histogram
As the Price Oscillator and MACD are so similar, the concept of MACD-Histogram was applied to the PPO. PPO-Histogram shows the difference between the PPO and the 9-day exponential moving average (EMA) from the PPO. The schedule is presented as a histogram, so that crossing the median line and the divergence were easily identifiable. The same principles that apply to the MACD-histogram is also applicable to PPOgistogramme.
The intersection of the median line for the PPO-Histogram is the same as the intersection of the moving averages for the PPO. If the PPO is more than the value of its 9-day EMA, then the value for the PPO-histogram will be positive. On the contrary, if the PPO is less than the value of its 9-day EMA, the importance PPO-Histogram will be negative.
Further increase or decrease promezhutkamezhdu PPO and its 9-day EMA would be reflected in the PPO-histogram. The sharp increase in the PPO-histogram indicates that the PPO increases faster than its 9-day EMA, and means that the bullish momentum has increased. The sharp decline in PPOgistogramme indicate that PPO is falling faster than the Moving Average and mean that the bearish momentum is increasing.
For more information on the interpretation of this indicator and its signals, see our article on the oscillators and MACD in past issues of the journal.
Absolute Price Oscillator (APO)
Absolute Price Oscillator (APO) is calculated by subtracting the longer moving average from the shorter moving average. See picture number 1
10 - periodnaya Exponential Moving Average (EMA) minus 30 - periodnaya Exponential Moving Average (EMA)
The values and form a line of an oscillator that fluctuates above and below zero, according to the difference in moving averages. If a short Moving Average is above a long moving average, the indicator will be positive. If a shorter rolling average is below the longer moving average, the indicator will be negative.
Indicator MACD, which is calculated as the difference between two exponential sliding average, is essentially the equivalent of APO. And if the software used for graphic display of price data, there is no indicator of APO, then you could easily be used an indicator MACD.
Percentage Price Oscillator (PPO)
Percentage Price Oscillator is calculated by subtracting the longer moving average from the shorter moving average and then the result is divided by the value of a long moving average. See picture number 2
(10 - periodnaya EMA minus 30 - periodnaya EMA) divided by 30 - periodnuyu EMA
This formula shows the difference between the two sliding average as a percentage of the longer moving average.
Absolute or percentage
Percentage Price Oscillator (PPO) and the Absolute Price Oscillator (APO) is served almost the same signals and are essentially the same form. All crossing the median line, as well as the crossing, which occurs when a short Moving Average crosses above or below the longer Moving averages come in one at the same time. However, because the PPO is calculated on the basis of per cent, the form of his lines may differ little, but important nuances of the form of lines of APO. Below is a schedule of the index "Nasdaq Composite", which illustrates some of the differences that may arise unexpectedly.
1. The green circle indicates that the PPO has formed boleenizky a maximum in December, while the APO has formed a higher maximum.
2. Later in December, APO continue higher, and PPO started smoothed. (red arrows) 3. In early January, PPO showed a lower minimum, which was one day earlier than the APO.
There are two main reasons to use the Price Oscillator Percentage rather than absolute price oscillator.
1. In the case with the percentage price oscillator, it is possible to compare the price levels of the oscillator between the two market-based instruments. Value PPO +5% means that over a short Moving Average of 5% higher than the longer moving average cost. The value per cent is comparable with other market-based instruments, regardless of the price of the instrument. Percentage Price Oscillator (PPO) for the SLB has reached only 3% of their peaks, while the index "Nasdaq Composite" rose above 7%.
2. Percentage Price Oscillator provides a better balance between the two moving average cost. The difference between two Moving averages shown on the shorter moving average. This allows you to compare values between the periods of time, regardless of the price of market-based instruments. In the case of the absolute price oscillators, the higher the price of market-based instruments, the greater the extremes oscillator. With the percentage price oscillator compare shares "Amazon" after a certain time, perhaps regardless of where the stock price in the region of 10 or 100.
PPO - histogram
As the Price Oscillator and MACD are so similar, the concept of MACD-Histogram was applied to the PPO. PPO-Histogram shows the difference between the PPO and the 9-day exponential moving average (EMA) from the PPO. The schedule is presented as a histogram, so that crossing the median line and the divergence were easily identifiable. The same principles that apply to the MACD-histogram is also applicable to PPOgistogramme.
The intersection of the median line for the PPO-Histogram is the same as the intersection of the moving averages for the PPO. If the PPO is more than the value of its 9-day EMA, then the value for the PPO-histogram will be positive. On the contrary, if the PPO is less than the value of its 9-day EMA, the importance PPO-Histogram will be negative.Further increase or decrease promezhutkamezhdu PPO and its 9-day EMA would be reflected in the PPO-histogram. The sharp increase in the PPO-histogram indicates that the PPO increases faster than its 9-day EMA, and means that the bullish momentum has increased. The sharp decline in PPOgistogramme indicate that PPO is falling faster than the Moving Average and mean that the bearish momentum is increasing.
For more information on the interpretation of this indicator and its signals, see our article on the oscillators and MACD in past issues of the journal.
Forex Magazine
based on stockcharts.com
based on stockcharts.com
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