Absolute Price Oscillator (APO)
fast_period = 12 (2–50) • slow_period = 26 (10–200) • ma_type = EMA Overview
The Absolute Price Oscillator (APO) is a momentum indicator that displays the difference between two exponential moving averages (EMAs) of a security's price in absolute terms. Similar in construction to the MACD indicator, the APO helps traders identify momentum changes, trend direction, and potential buy/sell signals.
Unlike the Percentage Price Oscillator (PPO) which expresses the difference as a percentage, the APO shows the actual price difference. This makes it particularly useful for analyzing a single security over time, though it cannot be used to compare momentum across securities with different price levels.
Interpretation & Trading Signals
Zero Line Crossovers:
- Bullish: APO crosses above zero (fast EMA crosses above slow EMA)
- Bearish: APO crosses below zero (fast EMA crosses below slow EMA)
Signal Line Crossovers:
- Bullish: APO crosses above its signal line
- Bearish: APO crosses below its signal line
Divergences:
- Bullish Divergence: Price makes lower lows while APO makes higher lows
- Bearish Divergence: Price makes higher highs while APO makes lower highs
Example Usage
Code examples will be available once the Rust implementation is complete.
Performance Analysis
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