What is Percentage Price Oscillator MT4 Indicator?
Derived from the MACD pointer with being percentage-based, The Percentage Price Oscillator (PPO) uses a PPO line that is plotted by the calculation of the percentage distinction between a fleeting EMA of the Close Price and another extended term EMA of the Close Price. Such calculation allows you to have a flag line by implementing EMA on the line and a histogram is presented to show the difference between the signal line and PPO line.
MACD needed an evolution because it is helpless to use MACD between different stocks as it is based on price. However, PPO is based on percentage, so it is legitimate to use it in looking at various stocks, neglecting the price levels.
When the fleeting normal is higher than the long haul number, the PPO line will possess a positive value, however, it will be negative when the condition is reversed. This leaves us with the conclusion that you can have more unique EMAs whenever you are going farther from the 0 value.
PPO is mainly used and well known for its ability to identify and monitor hybrids between the PPO plotted line and the original signal line beside putting an end goal to identify reversals and turns. The two powerful tools of the PPO is the 0 line to know whether the long haul number or the fleeting normal is higher and the hybrids of the PPO line.
PPO Line: (12 day EMA – 26 day EMA)/26 day EMA * 100 (Blue)
Flag Line: 9 day EMA of PPO Line (Red)
PPO Histogram: PPO Line – Signal Line (Orchid)
RELATED INDICATOR: Trading With DPO - Detrended Price Oscillator