The APO (Absolute Price Oscillator) is an indicator that defines and plots the difference between a fast and slow moving exponential moving average. Similar to the calculation for MACD without the smoothing line and the histograms.
This is an important indicator because it uses a zero line as the point of the moving averages crossing. With this visual concept, everything above the zero line then is considered to be bullish since the fast moving average is plotting high than the slow moving average. When prices fall below the zero line, it is then considered bearish with the fast moving average plotting lower in value than the slow moving average.
I utilize this indicator as a dashboard visualizer providing me with a simpler way of seeing that a crossing has occurred. This also allows me to keep track of another set of moving averages with out the clutter on the price chart.
APO = short MA – long MA ( Similar to the calculation of the MACD with the smoothing line. )
- Bull: Readings above zero line
- Bear: Readings below zero line
- Daily: Short MA: 3, Long MA: 8
- Weekly: Short MA: 8, Long MA: 21
These readings seem to produce strong results for what I trade in. However, changes to the values are suggested for faster/slower moving assets.
Orion Price Prophet 