> For the complete documentation index, see [llms.txt](https://help.za.velocitytrade.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.za.velocitytrade.com/web-platform/technical-indicators/oscillators/po-price-oscillator.md).

# PO (Price oscillator)

The Price oscillator uses two moving averages, one shorter-period, and one longer-period, and then calculates the difference between the two moving averages. The Price oscillator technical indicator can be used to determine overbought and oversold conditions as well as to confirm bullish or bearish price moves. It is basically a MACD, but the Price Oscillator can use any time period.

There are many trading methods for Price oscillator. Since the indicator is a trend following system, most traders follow a very simple buy rule when the shorter average crosses above the longer average, and vice versa, when the shorter average crosses below the longer average, a sell signal is triggered. Another method is to weaken the signals and go in the opposite direction. This generally works best in volatile markets as moving averages are not allowed to trend due to the bounded market range.

When the 9-day moving average crossed the 18-day moving average, the price oscillator crossed the zero line. When the short-term moving average crosses the long-term moving average, a bullish crossover occurs. Bullish crossovers are generally considered a good time to buy.

Likewise, when the 9-day moving average crossed below the 18-day moving average, the price oscillator crossed below the zero line. When the short-term moving average passes below the long-term moving average, a bearish crossover occurs. Usually, bearish crossovers are considered to be a good time for selling.

## Calculation

The Price oscillator displays the difference between moving averages in points, plotted on the basis of two periods:

PO = MA (P, n1) – MA (P, n2),

Where,

MA (P, n1) - moving average of the P price within n1 periods,

MA (P, n2) - moving average of the P price within n2 periods.

## Main parameters

* Type of Moving average – for selecting the MA type, available values: Simple, Exponential, Modified, Linear weighted;
* Sources prices for MA – determines the type of price at which the moving average will be calculated, available values: Close, Open, High, Low, Median, Typical, and Weighted;
* MA periods – for selecting the period of 1 and 2 moving average.

This technical indicator looks as follows on the chart:

![](/files/-MgF4QhBQ2mGKTmM6L-A)


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