The Price Oscillator(PO) shows the variation among two moving averages for the price of a security. Unlike the MACD which always uses 12- and 26-day moving averages and always expresses the difference in points, the Price Oscillator can show the variation between any moving averages and can be shown in either percentages or points.
Moving average analysis typically generates buy signals when a short-term moving average or price rises above a longer-term moving average. Sell signals are generated when a shorter-term moving average or price falls below a longer-term moving average. The PO's single line illustrates the cyclical and often profitable signals generated by a two moving average system. Buy when the PO rises above zero and sell when the indicator falls below zero.
Calculation:
Type = Percent/Point
MA = Moving Average
Inputs:
Short Period = 1
Indicates short time period(the number of days for daily analysis, the number of weeks for weekly analysis, etc.).
Long Period = 25
Indicates long time period(the number of days for daily analysis, the number of weeks for weekly analysis, etc.).
Moving Average Type = Simple
Indicates Moving Average type.
Calculation Type = Point
Indicates Percent/Point selection.
Indicator Type: Momentum, Trend