Overview
PPO Crossover is a momentum-based strategy built around the Percentage Price Oscillator (PPO).
The PPO measures the difference between two exponential moving averages as a percentage of the slower moving average. Unlike indicators based on absolute price differences, this normalization makes PPO easier to compare across instruments and price levels while retaining the familiar behavior of a moving-average momentum model.
Signal Logic
The strategy monitors the crossover between the PPO line and its signal line.
A buy signal appears when the PPO crosses above the signal line.
A sell signal appears when the PPO crosses below the signal line.
This creates a momentum model that responds to changes in the relationship between faster and slower price trends, with the signal line providing additional smoothing.
PPO
| Parameter | Description |
|---|---|
| Fast | Defines the period of the faster exponential moving average used to calculate PPO. Lower = more responsive to recent price changes. Higher = smoother, slower signals. |
| Slow | Defines the period of the slower exponential moving average used to calculate PPO. Lower = more responsive to broader trend changes. Higher = smoother, longer-term behavior. |
| Smooth | Defines the smoothing period used for the PPO signal line. Lower = faster crossover signals. Higher = smoother, slower signals. |
Common Features
Each strategy has its own signal logic, but installation, setup, and trade management are identical across the product line. Once you know how to use one, you know how to use the rest.
See also: