Stock Chart Magic, PPO and MACD

For investors that are interested in technical analysis or practice it often understanding the difference between PPO and MACD is very useful.

Stock chart analysis is critical to investment success so take a look at the chart below to see visually both Percentage Price Oscillator (PPO) and Moving Average Convergence Divergence (MACD) in action.

stock chart magic NASDAQ

Ignoring the actual chart, at first glance it seems as if the top box is the same as the bottom… and at a second glance you can notice in the top box it says very clearly “PPO” as the header in the top left corner but the bottom box header is “MACD”… so whats the deal?

A quick lesson in technical analysis, and it lies in PPO and MACD

They are basically the same, the only difference is that Percentage Price Oscillator (PPO) expresses the difference in moving averages as a percentage, not as a value.

Further Reading:

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