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MACD percentage price oscillator

MACD Percentage Price Oscillator is a variation of the MACD indicator. Signal line crossovers are almost identical. The major difference is the MACD Percentage scale which enables comparison between stocks at different prices.

MACD Percentage Price Oscillator's trading signals are the same as for the MACD indicator. The MACD indicator is primarily used to trade trends and should not be used in a ranging market. Signals are taken when MACD crosses its signal line, calculated as a 9 day exponential moving average of MACD.

First check whether price is trending. If the MACD indicator is flat or stays close to the zero line, the market is ranging and signals are unreliable.

Signals are far stronger if there is either:

- a divergence on the MACD indicator; or
- a large swing above or below the zero line.
- Unless there is a divergence, do not go long if the signal is above the zero line, nor go short if the signal is below zero. Place stop-losses below the last minor Low when long, or the last minor High when short.

The main advantage of MACD Percentage over MACD is the ability to compare indicator values across stocks.

The only difference with MACD Percentage Price Oscillator is that the difference between the fast and slow moving averages is calculated as a percentage of the slow moving average: MACD = (12 Day EMA - 26 Day EMA) / 26 Day EMA
DivergenceMoving Average Convergence / Divergence (MACD)macdcrossMoving AveragesTrend Analysis

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