DEFINITION of 'Percentage Price Oscillator  PPO'
A technical momentum indicator showing the relationship between two moving averages. To calculate the PPO, subtract the 26day exponential moving average (EMA) from the nineday EMA, and then divide this difference by the 26day EMA. The end result is a percentage that tells the trader where the shortterm average is relative to the longerterm average.
Calculated as:
BREAKING DOWN 'Percentage Price Oscillator  PPO'
The PPO and the moving average convergence divergence (MACD) are both momentum indicators that measure the difference between the 26day and the nineday exponential moving averages. The main difference between these indicators is that the MACD reports the simple difference between the exponential moving averages, whereas the PPO expresses this difference as a percentage. This allows a trader to use the PPO indicator to compare stocks with different prices more easily. For example, regardless of the stock's price, a PPO result of 10 means the shortterm average is 10% above the longterm average.

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What is a common strategy traders implement when using the Percentage Price Oscillator ...
A common trading strategy stock traders implement using the percentage price oscillator (PPO) involves using the indicator ... Read Full Answer >> 
What are the best technical indicators that complement the Percentage Price Oscillator ...
The percentage price oscillator (PPO) is calculated by subtracting a longterm exponential moving average (EMA) from a shorterterm ... Read Full Answer >> 
Why is the Percentage Price Oscillator (PPO) important for traders and analysts?
The percentage price oscillator (PPO) is a technical trading indicator that traders and analysts primarily use for measuring ... Read Full Answer >> 
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The percentage price oscillator (PPO) is a momentum indicator that is essentially a variation on the popular moving average ... Read Full Answer >> 
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A crossover on the percentage price oscillator (PPO) indicates a shift in market momentum, either from buying to selling ... Read Full Answer >> 
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Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>