GoForex
Technical Indicators
Dukascopy Bank SA

or

Dukascopy Bank SA
Managed Forex Accounts
Choose from a multitude of forex traders. More
Featured Forex Brokers
Open a free demo or live account with a featured forex broker. More
AutoTrading
Copy the trades of expert traders automatically on your own account. More

Percentage Price Oscillator (PPO)

Also called just Price Oscillator, this momentum indicator shows the relative difference between two two moving averages as a percentage of the larger moving average. This allows a trader to more easily compare two currencies with differing prices.

Example

Interpretation

If the value of the Percentage Price Oscillator is 15, this means the short term average is 15 percent above the long term average.

A Bullish Signal is given when the PPO rises above the zero line.
The oversold level is the bottom of the PPO. This is when you should look to go long.

A Bearish Signal is given when the PPO falls below the zero line.
The overbought level is the top of the peaks of the PPO. This is when you should look for shorts.

Calculation

((12-day EMA - 26-day EMA) / 26-day EMA) x 100

More Technical Indicators:

   

ZuluTrade Alpha Judge
Trading Services Reviews

Bookmark this page

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

©2004-2013 GoForex. All Rights Reserved. *Disclaimer | GCI Financial Warning!