PPO Pass Node
Percentage Price Oscillator — Series Input
Overview
The PPO Pass Node computes the Percentage Price Oscillator on a series input. PPO is the MACD-equivalent expressed as a percentage — the difference between two EMAs divided by the slower EMA, making it scale-independent and directly comparable across different price levels.
PPO is especially useful for comparing momentum across assets at different price levels (e.g., comparing a $10 stock to a $500 stock). Zero-line crossovers signal trend direction; divergences from price warn of momentum changes; histogram analysis reveals acceleration and deceleration.
Formula
Parameters
| Parameter | Default | Description |
|---|---|---|
| fastPeriod | 12 | Fast EMA period |
| slowPeriod | 26 | Slow EMA period (also the denominator for normalization) |
Inputs & Outputs
| Slot | Direction | Type | Description |
|---|---|---|---|
| input | Input | { values, timestamps } | Price or any numeric series |
| values | Output | (number | null)[] | PPO percentage values; nulls during warm-up |
| timestamps | Output | number[] | Unix timestamps aligned to input |
Use Cases
Cross-Asset Momentum Comparison
Because PPO is percentage-based, you can directly compare momentum across stocks at different price levels — rank multiple assets by PPO to find relative momentum leaders and laggards.
Zero-Line Trend Signals
PPO above zero means the fast EMA is above the slow EMA — bullish momentum. Below zero means fast is below slow — bearish momentum. Combine with a signal line EMA for crossover entries.
Histogram Analysis
Compute PPO minus its EMA signal line to create a histogram equivalent to MACD histogram — expanding bars indicate accelerating momentum; contracting bars warn of deceleration before a crossover.
Tips & Best Practices
PPO vs MACD
PPO is preferred over MACD for backtesting across different time periods or assets, as MACD magnitude changes with price level while PPO remains percentage-normalized throughout.
Add Signal Line Downstream
This node outputs the PPO line only. Add an EMA node downstream (period=9) to compute the signal line, then compare PPO vs signal for crossover signals.
Historical Level Comparison
PPO values are historically comparable for the same asset. If PPO reached +5% at a previous major top, similar readings at current highs suggest comparable overbought conditions.