Percentage Price Oscillator (PPO)

PPO expresses the difference between two moving averages as a percentage of the slower MA: PPO = ((FastMA - SlowMA) / SlowMA) × 100. With default settings (12, 26, SMA), it calculates the percentage difference between 12-period and 26-period MAs. Unlike APO which shows absolute differences, PPO's percentage format makes values comparable across different price levels and assets. Positive values indicate bullish momentum (fast MA above slow); negative values indicate bearish momentum. The ma_type parameter allows selection of different MA types.

Cryptocurrency traders use PPO to compare momentum across different-priced cryptocurrencies objectively. A 5% PPO reading is directly comparable whether BTC is at $20k or $60k, or comparing to altcoins at cents. PPO crossing above zero signals bullish momentum; below zero signals bearish. Divergences between PPO and price indicate potential reversals. PPO is particularly valuable for portfolio strategies tracking multiple assets - percentage values enable fair momentum comparisons. Combine with RSI for overbought/oversold context, with volume for confirmation, or with ADX for trend strength. Popular among portfolio managers and multi-asset traders requiring normalized momentum measures.