The percentage price oscillator simply uses a 9-day exponential moving average, decreased and then divided by the 26-day exponential moving average. One advantage to this type of oscillator is has a dimensionless quantity, a pure number that isn't fixed to a value such as the price of the underlying stock or other security.
How to Trade Using The PPO Indicator
For traders who choose to use the percentage price oscillator, you can easily identify when a symbol is oversold or overbought when it is about plus or minus 10% of the usual range. using the chart above you can see on the 9th of November at about 21:00 hours the value of this currency pair was overbought, and a crossover occurred in the indicator indicating a possible price reversal.
Custom Parameters
There are just a few settings for this indicator, the fast, slow and signal periods which are set at 12, 26 and 9, you can also change the colours of the lines.
How to use an Automated cBot
If you wish to use the percentage price oscillator indicator in your automated trading robot then we can help you do this so you can use it to help identify trade opportunities.
How To Install & Remove
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform.
Any Questions?
If you have any questions, please first search our product help forum for the answer, if you cannot find it, post a new question.
Join Telegram Community
You can join a Telegram community and chat with other traders to discuss, share and ask for help.
