Extra indicators
PPO: Percentage Price Oscillator
MACD expressed in per cent of the slow average, so it can be compared across tickers and over time.
The idea in plain words
MACD is measured in price units, so a $3,000 index and a $1 currency pair give very different numbers. PPO divides by the slow EMA and shows the gap in per cent.
How it is calculated
(EMA 12 − EMA 26) ÷ EMA 26 × 100; signal = EMA 9 of PPO; histogram = PPO − signal.
PPO = (EMA(12) − EMA(26)) ÷ EMA(26) × 100
Signal = EMA(PPO, 9), Histogram = PPO − SignalHow to use it
- Same signals as MACD: signal-line crosses, zero-line crosses, divergences.
- Comparing momentum between tickers.
Drawing conclusions
- The histogram shows whether momentum is speeding up or slowing down.
Example
BTCUSD daily, PPO = +4.1%: the 12-day EMA is 4.1% above the 26-day EMA, a strong uptrend.
Prices in examples are illustrative.
Watch out for
- Like MACD it lags at turning points.
A little history
A standard variation of Gerald Appel's MACD (late 1970s).
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.