Absolute Price Oscillator (APO)

Description:

The Absolute Price Oscillator displays the difference between two exponential moving averages, one fast and one slow.  It's a momentum indicator that can help traders identify potential trend reversals and trade setups.

Input Parameters:

• Fast: Faster moving average.
• Slow: Slower moving average.

Use Cases:

1. APO crossing above 0 is considered bullish.
2. APO crossing below 0 is considered bearish.
3. Bullish divergence occurs when price makes a lower low but APO makes higher low.
4. Bearish divergence occurs when price makes higher high but APO makes lower high.

Do you want to learn more? Check out our Learning Center Article.

(An example of bullish divergence using APO)