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Absolute Price Oscillator (APO)

Classic trend momentum moving-average classic

Shows the absolute difference between two moving averages of different periods.

Usage

Use to identify trend crossovers and momentum. It is essentially a MACD without the signal line, showing the raw distance between fast and slow averages.

Background

The Absolute Price Oscillator (APO) is based on the difference between two exponential moving averages. It is a trend-following indicator that signals a change in direction when the fast EMA crosses the slow EMA, providing a clear visual of trend development. — TA-Lib Documentation

Parameters

  • fastperiod (default: 12): Fast period
  • slowperiod (default: 26): Slow period

Formula

[ APO = EMA(fast) - EMA(slow) ]

Source