The benefits over the MACD
- by using the percentage measurement rather than price values, it allows you to compare currency pairs using % against each other, so the price differences are eliminated.
- You also have the benefit of being able to use the indicator against different time frames by only looking at percentage changes regardless of the market price.
PPO = (Short-term EMA – Long-term EMA) / Long-term EMA
Percentage Price Oscillator (PPO) is a very similar to the MACD indicator. The standard settings are the same: 12, 26, 9, and both shows the difference between the two Moving averages. Where the indicators vary is with one difference, that PPO shows it in percent.
The trading strategy that can be used with this indicator is the same as the MACD, with the same crossover rules and divergences.