Percentage Price Oscillator (PPO)

Percentage Price Oscillator (PPO) is a very close neighbor of MACD indicator.


PPO standard settings are similar to MACD settings: 12, 26, 9, and PPO, same as MACD shows the difference between the two Moving averages, with one difference, that PPO shows it in percents.


Trading with PPO is similar to trading with MACD indicator, with the same zero line crossover rules, divergence etc.


Reasons for using PPO instead of MACD


  • by having the percentage measurement rather than price values (for example PPO = 3%), it becomes possible to compare currency pairs with their rising/falling % against each other, regardless the actual prices.
  • PPO also offers a better interpretation of the two moving averages in relation to each other. Again, this absolute percentage value allows to make comparisons across time frames, regardless the market price.


Percentage Price Oscillator formula



PPO = (Shorter-term EMA – Longer-term EMA) / Longer-term EMA


Standard settings for PPO are: 12 period EMA, 26 period EMA, 9 period EMA (same as with MACD) but traders can use any other sets of Moving averages.


PPO signal line = 9 EMA of PPO

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Posted By toyafields : 31 August, 2020
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Alerts for each individual pattern can be turned on or off as well.   It also has the option to set a separate color for each pattern.   Note: Of the 3 indicators listed on this page, this is the only one that allows you to assign a separate color to each candlestick pattern.   It uses abbreviated labels, which keeps the chart less cluttered, and includes an onscreen legend to help you identify each pattern that is highlighted.   Sounds good, right? So… what’s the problem?   Actually, there are several problems with this indicator that kept me from ranking it higher.   For instance, the indicator doesn’t identify the morning star or evening star patterns (including the doji star patterns which are the same thing) for some reason.   This indicator also seems to think almost anything with a long wick is a shooting star or hammer, regardless of how large the real body is.   It also doesn’t identify the hanging man or inverted hammer, although this is by design. 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He is responsible for introducing Japanese candlestick trading to the Western world.   The Nison Candle Highlighter is designed to identify 28 candlestick patterns according to Steve’s own specifications, so you know the patterns are accurate.   It has the ability to turn each individual candlestick pattern on or off, so you can focus on just the patterns that you’re interested in trading.   You can use full or abbreviated labels (pictured below), so you can keep your charts uncluttered.   The sales page has a legend that you could reference or print out if needed, although the abbreviated labels are pretty self-explanatory.   Example: -E = bearish engulfing pattern and +E = bullish engulfing pattern.   This is the most logical and elegant abbreviation system that I encountered while I was testing these candlestick pattern indicators.   As you can see from the image above, the labels don’t crowd the candlesticks either.   Okay, so enough about labels. How well does it identify candlestick patterns?   For starters, it actually identifies all 28 patterns that it’s designed to identify.   The Nison Candle Highlighter accurately identifies each candlestick pattern, as you might imagine, but it also identifies each candlestick pattern within the proper context of the market.   In other words, it won’t identify a hammer (bullish reversal pattern) after a bullish price movement. None of the other indicators that I tested could do that.   Of course, it’s not perfect.   For instance, if you look at the chart above you can see a couple of engulfing patterns that were nothing more than a small real body candlestick engulfing a doji or spinning top.   Although those are technically engulfing patterns, they aren’t worth considering because their size is so small relative to the previous candlesticks.   Final Thoughts I tested many indicators to find the best candlestick pattern indicator for MT4. 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Eata Pollan Forex Strategy is a perfect trading system for swing traders. It works great in time frames like 5 minute and 15 minute. New forex trader won’t have any difficulties using this system as it has very few indicators and it is really easy to use them. Eata Pollan has certain rules which you have to follow in order to make money consistently in the market.

Here is an indicator I made, but, being an MTF indy, the higher TF's will repaint some bars back, depending on the TF difference (not very fast though). It's still a good confirmation when price breaks the upper TF channels, then watch for the return. Also, see how price bounces back and forth between the current TF channel (period 0). Also, attach a Slope Direction Line with a setting of 3 and watch how the SDL will help price cross sometimes. Enjoy!

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