The Percentage Price Oscillator (PPO) is a handy tool for traders looking to analyze price movements over different time frames without being tied down by actual price levels.
How to Calculate the PPO:
PPO = ( EMA(CLOSE, 12) - EMA(CLOSE, 26) ) / EMA(CLOSE, 26)
SIGNAL = SMA(PPO, 9)
Key Signals to Watch For:
- Positive/Negative Divergence
- The crossover of the PPO with its signal line
- Indications of overbought or oversold conditions
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