Percentage Price Oscillator – PPO:

The Percentage Price Oscillator is a technical indicator used to measure momentum and represents the difference between two moving averages as a percentage.  The PPO is found by subtracting the longer moving average from the shorter moving average and then dividing the difference by the shorter moving average.  The moving averages utilized with Tradeopolis.com formulas are the 200 day moving average and the 50 day moving average.  In most cases traders utilize shorter moving averages as these will give shorter term indications of price movements, but for the sake of Tradeopolis.com, we like to look at the broader picture therefore a longer term outlook at both the fundamentals of the company as well as the technicals is used and in turn we have chosen to use longer term moving averages.