Stock Chart Magic, PPO and MACD

Posted by Blain Reinkensmeyer on Thursday June 7, 2007

I was fiddling around with some stock charts over at stockcharts.com and I came across the following chart of the NASDAQ:

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.

So, next time you get into a debate with a business colleague or family member about who knows more about investing, ask them “O ya, so what’s the difference between PPO and MACD in technical analysis smart guy?” and before they can answer with a, “I dunno, WHAT” tell them there is no difference, that PPO is just the percentage version of MACD, duh…. and walk away before they ask you what PPO and MACD stand for, hahaha.

(For educational purposes, a great article explaining MACD can be found here)

If you enjoyed this post, make sure to subscribe to the feed!

Related Posts:


Filed Under Stock Market Education |
Subscribe to the Blog | Recieve Blog Updates by Email!

----------------------------------------

Share Your Knowledge »

2007-06-07 06:31:14
Hi Blain, I’m very interest in learning more about technical analysis, did you write a series about that or do you know a good source where I get the right info. There are so many websites that are made by clowns… it is tough to find valuable source of information -) thx! FB.
Comment by Blain
2007-06-07 14:37:48
I continue to write more and more on technical analysis each day and add it to the investor education archives. I agree there are tons of websites made by clowns, it is actually pretty ridiculous when you think about it! shock I will email you with some other good sites to check out!
 
 
Name (required)
E-mail (required - never shown publicly)
URI
Subscribe to comments via email
mrgreen neutral arrow idea ? ! -) roll twisted evil cry oops razz mad lol cool ??? shock eek sad smile grin
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong> in your comment.
(Please Note: if this is your first comment, it will have to be approved before appearing publicly.)