Percentage Price Oscillator: Indicator Documentation
Syntax
DataSeries PPO( DataSeries ds, int Period1, int Period2 )
Parameter Description
| ds | Data series |
| Period1 | The shorter-term moving average period |
| Period2 | The longer-term moving average period |
Description
According to the
Investopedia's definition, Percentage Price Oscillator (PPO) is a technical momentum indicator showing the relationship between two moving averages. To calculate the PPO, subtract the 26-day exponential moving average (EMA) from the nine-day EMA, and then divide this difference by the 26-day EMA.
It allows to rank and compare stocks more easily than does its counterpart, the MACD. Since PPO expresses the difference as a percentage, you will know that a "5" reading of PPO means the shorter moving average is 5% above the longer.
Note! Version 2010.10 of Community Indicators contains a breaking change: replaced Bars parameter with DataSeries.
Example
This example illustrates a trading system based on Percentage Price Oscillator (PPO):
Note: the code is based on the new syntax and requires Community Indicators 2010.10.
using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using WealthLab.Indicators;
using Community.Indicators;
namespace WealthLab.Strategies
{
public class PPO_demo: WealthScript
{
private StrategyParameter Period1;
private StrategyParameter Period2;
public PPO_demo()
{
Period1 = CreateParameter("Period1", 9, 9, 30, 1);
Period2 = CreateParameter("Period2", 26, 20, 50, 1);
}
protected override void Execute()
{
PPO ppo = PPO.Series( Close, Period1.ValueInt, Period2.ValueInt );
for (int bar = ppo.FirstValidValue; bar < Bars.Count; bar++)
{
if (IsLastPositionActive)
{
if ( ppo[bar] < 0 )
SellAtMarket( bar+1, LastPosition );
} else
{
if ( ppo[bar] > 0 )
BuyAtMarket( bar+1 );
}
}
ChartPane ppoPane = CreatePane( 20, true, true );
PlotSeries( ppoPane, ppo, Color.DarkRed, LineStyle.Histogram, 2 );
}
}
}