Absolute Price Oscillator (APO)

The APO oscillator is derived from the difference between a fast EMA and a slow EMA. The most common way of trading with the Absolute Price Oscillator is through zero crossovers, meaning a buy signal is generated whenever the APO crosses above zero and vice versa. Divergences can also be spotted and traded with the APO Oscillator.

// Absolute Price Oscillator

set FastMA = ema(close,20)
set SlowMA = ema(close,50)

set APO = fastma - slowma

set buy = crossover(apo,0)
set sell = crossover(0,apo)

plot(buy,buy,img,apo:apo)
plot(sell,sell,img,apo:apo)
plot(0,line,white,APO)
plot(APO,line,red,APO)
signals(buy,sell)