# Price oscillator

## What is a price momentum oscillator?

Price oscillator is a momentum oscillator in technical analysis. Price oscillator also called percentage price oscillator (PPO), A measurement of momentum based on the trend between two separate exponential moving averages. This is used in conjunction with MACD to assign a percentage value to monitor convergence and divergence. It requires a calculation of the net difference in the 12 days and 26 day EMA, dividing by the longer average and then multiplying the result by a hundred to arrive at the percentage value.

### How to write a price oscillator formula?

The formula for the price Oscillator:
[(12ᵐᵃ - 26ᵐᵃ)/26ᵐᵃ]x 100= PO
where: 12ᵐᵃ =12 days EMA
26ᵐᵃ =26 days EMA
PO= price oscillator

### How price oscillator is useful?

The price of the oscillator is useful in employing a MACD to identify buy and sell signals. The indications are similar to MACD, but expressed as a percentage is above or below the signal line (a 9 day EMA of the price oscillator.)
the price oscillator is a valuable confirmation tool for what candlestick reversal indicator signal. Like MACD this is a track of moving averages, so it is backward-looking. Any large moves in price may distort the price oscillator, meaning that before acting on a buy or sell signal korma traders using the price oscillator need independent confirmation from candlestick pattern in the agreement or from Western technical guides.