PPO (Percentage Price Oscillator)

Indicator Description

PPO (Percentage Price Oscillator) is a momentum indicator that displays price momentum changes by calculating the percentage difference between two moving averages of different periods, similar to MACD but in percentage form.

Function Information

• Function Name: PPO
• Input Parameters:
  • Close: Closing price
• Parameter Settings:
  • fastperiod: Fast period, default 12
  • slowperiod: Slow period, default 26
  • matype: Moving average type, default 0
• Output: PPO value

Calculation Principle

PPO is calculated using the following formula:

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

Where:

• FastMA is the fast moving average
• SlowMA is the slow moving average

Usage Scenarios

1. Momentum Analysis
2. Trend Confirmation
3. Trading Signal Generation
4. Market State Analysis

Usage Recommendations

1. PPO > 0 indicates upward momentum
2. PPO < 0 indicates downward momentum
3. Watch for zero-line crossovers
4. Pay attention to market environment changes