The PPO is very similar to the MACD. It measures the momentum of the price and includes moving averages in its calculation.

Like the MACD, this indicator has a signal line. It is the nine periods EMA of the PPO line, which is obtained from the subtraction of a fast and slow EMA.

The PPO can generate buy and sell signals in two different ways: through PPO line and signal crossovers, or through signal line crosses between the positive and the negative region, that is, the zero line.

The zero line separates the bullish and bearish sentiment. When the signal line goes from below it to above it, it gives a buy signal. On the other hand, if the signal line goes from positive to negative, the indicator suggests that the bears are in charge.