Education – Lesson 18 – PPO

The PPO uses percentage change to calculate the momentum of the stock price. This compares to the MACD, that uses price change to calculate the momentum of the stock price. The difference is shown by having both displayed on a strong stock like Amazon.

Because Amazon has had big thrusts in the past, by using the percentage change in the price, we can compare when Amazon had the biggest moves in price. The most recent thrust was one of the biggest percentage moves in Amazon’s history.

The PPO also shows momentum divergences more clear than the MACD.

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