Price oscillator

Price oscillator

Index is very similar to the MACD indicator in almost everything except the way his account and that depends on the difference between user Almovinj values. As usual Almovinj user as possible be weighted EMA or WEIGHTED which uses closing share value in the middle of the period required in the normal account Almovinj or SMA, which uses the closing price for each day. But often EMA is used to calculate the index.

There are two types of this indicator are:

APO

It stands for ((ABSOLUTE PRICE OSCILLATOR This indicator uses the truth value of the quotient subtract slow Almovinj from Quick Almovinj as we do in the MACD

PPO

It stands for (PERCENTAGE PRICE OSCILLATOR) This index is calculated from the proceeds put Almovinj slow from Almovinj rapid then dividing by the value Almovinj rapid Therefore this type uses a percentage of the Moving is more type used because the percentage express movement share more than the absolute value used MACD and APO

 The method of calculating PPO

Consists of 2 Moving EMA first short fast is EMA 12 and the second slow run is EMA 26're bringing Almovinj slow from Almovinj rapid and dividing by the value Almovinj quick, we get the value of the index, which appears on the line moves up and down the zero line CENTER LINE as we do in the MACD.

Note from the chart that the short Almovinj when moving on indicator long Almovinj shown above the half line and short when Almovinj moves under long we find the cursor line below the half line.

Found from the practical application of this indicator and qualitative two APO and PPO they give an almost the same results with variations as simple as in the figure.

We note that the line inside the green circle with the APO that low line for line formed with the PPO red arrow points to the rise with APO top of the line formed with PPO

In January ends curved line with low APO more than PPO.

It is important that the differences are not significant, but common usage is PPO.

Index and Alheisto

As they did with the MACD used with this indicator line EMA 9 your cursor himself to come out walking with the index line and calculate the difference between the value of the index and the value of this line of nine out Alheisto curves found Balmcd and which we have explained before, and represented by this chart:

From here on out that Price Index PPO is used in most of the charts and gives the same results as the MACD and there are no differences except that the price index uses the percentage MACD uses absolute values.

Uses of this indicator:

Are the same uses of MACD but preferred him by analysts and find installed in most of the charts more than MACD itself.