Percentage Price Oscillator: the gap between a 12 and 26 EMA as a percent of the slow EMA, with signal line and histogram.
Overview
The Percentage Price Oscillator (PPO) works like MACD but shows the gap as a percentage. That makes it easier to compare across symbols and price levels.
It plots in its own pane with a signal line, an optional histogram and a gradient fill.
How it works
PPO = (fast MA - slow MA) / slow MA x 100, with fast 12 and slow 26 EMAs by default. Signal = 9-bar EMA of PPO. Histogram = PPO - Signal.
The average types for the lines and the signal can be changed.
How to use it
- Some traders watch PPO crossing its signal line.
- Use zero-line crosses as trend changes in the averages.
- Compare PPO readings across symbols because it is in percent.
- Watch for divergence between PPO and price.
These are ways some traders read it, for learning. They are not trade signals.
Settings
| Setting | Default |
|---|---|
| Settings | |
| SourcePrice series fed into the fast and slow averages.Options: Close, Open, High, Low, HL2, HLC3, OHLC4, HLCC4 | Close |
| Fast LengthLength of the fast moving average. | 12 |
| Slow LengthLength of the slow moving average. The spread is divided by it and scaled to a percentage of price. | 26 |
| Average TypeMoving average type used for the fast and slow averages.Options: EMA, SMA | EMA |
| Signal SmoothingLength of the signal line that smooths the PPO line. | 9 |
| Signal TypeMoving average type used for the signal line.Options: EMA, SMA | EMA |
| Style | |
| BullishColor of the PPO line, gradient fill and histogram above the zero line. | #089981 |
| BearishColor of the PPO line, gradient fill and histogram below the zero line. | #f23645 |
| Signal LineColor of the signal line. | #ff9800 |
| Show HistogramDisplays the histogram (PPO minus signal line) as columns. Bright columns mark a spread still widening, faded ones a spread narrowing back. | On |
| Gradient FillFills the area between the zero line and the PPO line with a vertical gradient. | On |
Alerts
You can alert on its line crossing a value or the candle close (from the chart's + menu); checked while ZoroCharts is open.
Notes and limits
- Works on any symbol and timeframe; it only needs candle data.
- It lags like any average-based tool.
Education only. Not financial advice. Indicators mark what happened on the chart; they do not predict what price will do. Trading futures, forex, crypto and other markets carries a high level of risk and may not be suitable for everyone.