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:
INVESTOPEDIA EXPLAINS '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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