What is PVO indicator?

The Percentage Volume Oscillator (PVO) is a momentum oscillator for volume. The PVO measures the difference between two volume-based moving averages as a percentage of the larger moving average. As with MACD and the Percentage Price Oscillator (PPO), it is shown with a signal line, a histogram and a centerline.

How do you use a price oscillator?

The Price Oscillator uses two moving averages, one shorter-period, and one longer-period, and then calculates the difference between the two moving averages. The Price Oscillator technical indicator can suggest areas of overbought and oversold conditions as well as attempting to confirm bullish or bearish price moves.

How do you use MACD and RSI together?

Use Stop-Losses for Risk Management While MACD and RSI are popular indicators to pair together because of their proven value over time, it’s possible for these indicators to give false signals—even when combined with one another.

How is the PPO indicator used in trading?

The indicator is only measuring and reflecting the distance between two moving averages, not actual price movement. The PPO indicator is also useful for comparing momentum between assets. Traders simply need to look at which asset has a higher PPO value to see which has more momentum.

What does the percentage value of a PPO mean?

Conversely, if an asset’s price makes a lower low, but the indicator makes a higher low, it could suggest that the bears are losing their traction and the price could head higher soon. The PPO’s percentage value allows traders to use the indicator to compare different assets in terms of performance and volatility.

What is a percentage price oscillator ( PPO )?

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 center line.

What kind of moving average is PPO based on?

Standard PPO is based on the 12-day Exponential Moving Average (EMA) and the 26-day EMA, but these parameters can be changed according to investor or trader preferences. Closing prices are used to calculate the moving averages and, therefore, PPO signals should be measured against closing prices.