TRADING 9 SECTORS OF SPY

[TREND1]

Percentage Price Oscillator

Introduction


The Percentage Price Oscillator (PPO) is a momentum oscillator that measures the difference between two moving averages as a percentage of the larger moving average. As with its cousin, MACD, the Percentage Price Oscillator is shown with a signal line, a histogram and a centerline. Signals are generated with signal line crossovers, centerline crossovers and divergences. Because these signals are no different than those associated with MACD, this article will focus on a few differences between the two. First, PPO readings are not subject to the price level of the security. Second, PPO readings for different securities can be compared, even when there are large differences in the price. See the ChartSchool article on MACD for information on signals common to both MACD and PPO


http://stockcharts.com/school/doku.php?st=ppo&id=chart_school:technical_indicators:price_oscillators_ppo