Percentage Price Oscillator

The Percentage Price Oscillator (PPO) indicator is a momentum oscillator that measures the difference between two moving averages as a percentage of the larger moving average. It is similar to MACD-Histogram, but it calculates percentages as opposed to absolute values.

Interface

Supported license & Trade types

Supported License

Supported Trade Types

Spot trading

Simple license

Margin trading

Advanced license

Leverage trading

Formula

Percentage Price Oscillator indicator has the following formula:

Percentage Price Oscillator (PPO): {(12-day EMA - 26-day EMA)/26-day EMA} x 100 Signal Line: 9-day EMA of PPO PPO Histogram: PPO - Signal Line

General Settings

  • Exchange Website to monitor

  • Currency Pair to monitor for trade signals

  • Update Speed

  • Trade Signals

Tip: The exchange doesn't have to be the same exchange you are currently trading on.

Indicator Settings

  • Long Length

    • Number of candles (or time periods) used to calculate shorter EMA.

  • Short Length

    • Number of candles (or time periods) used to calculate longer EMA.

  • Signal Length

    • Number of candles (or time periods) used to calculate Signal Line.

  • Trigger Method

    • Method to determine situation type for signals.

Usage

The moving average based indicators (like this one) work well when they are evaluating data over a long period of time. This is because the longer the timeline, the more accurate the average gets.

Moving averages perform best when there is a lot of volatility (meaning an overall uptrend or an overall downtrend). When prices are stable there is not enough movement, causing the moving averages to become too sensitive. In this situation too many buy and sell signals will be produced.

A moving average is recommended with an update speed of at least 20 minutes. The common intervals are between 20 minutes and 3 hours.

The moving averages work best with mainstream crypto coins like BTC, LTC, and ETH.