Absolute Price Oscillator (APO) Indicator

The Absolute Price Oscillator displays the difference between two exponentialmoving averages of a security's price and is expressed as an absolute value. APO crossing above zero is considered bullish, while crossing below zero is bearish. A positive indicator value indicates an upward movement, while negative readingssignal a downward trend. Divergences form when a new high or low in price is not confirmed by the Absolute PriceOscillator (APO). A bullish divergence forms when price make a lower low, but the APOforms a higher low. This indicates less downward momentum that could foreshadow a bullishreversal. A bearish divergence forms when price makes a higher high, but the APO forms alower high. This shows less upward momentum that could foreshadow a bearish reversal.