Price Oscillator
The difference between two moving averages of price, expressed either in absolute terms or as a percentage.
Formula
Percentage Price Oscillator = (Short-Period MA - Long-Period MA) / Long-Period MA x 100
Unit
%
In depth
The percentage version solves MACD's main limitation: because it divides by the longer average, its readings are comparable across securities at different price levels and across time as a security's price changes. A MACD of 10 on a ₹500 stock and a MACD of 10 on a ₹3,000 stock describe very different situations, while a PPO of 2% means the same thing in both. Aside from the normalisation, its construction and interpretation are identical to MACD's. The measure is described here without any claim about future prices.
Worked example
A 12-period average of ₹506 and a 26-period average of ₹496 give a PPO of (506 - 496) / 496 x 100 = 2.02%. The equivalent MACD is ₹10, a figure that means nothing without knowing the price level.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Price Oscillator” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.