FTB-C000353 / Formula component

Percentage Normalization

Percentage Normalization converts an absolute difference into a relative percentage using an explicitly chosen nonzero baseline.

Also known asrelative spread normalization

Definitions

In plain terms

For PPO, the fast-minus-slow spread is divided by the slow moving average and multiplied by 100.

Technical

The contract must name numerator, denominator, scale factor, sign, units, zero policy, and readiness.

Scope

Percentage normalization does not remove all effects of volatility, currency, or instrument structure.

Examples

  • A governed lesson calculates or identifies Percentage Normalization only after its parameters, state, timing, and edge cases are declared.

Common misconceptions

  • Percentage normalization does not remove all effects of volatility, currency, or instrument structure.

Concept relationships

Where this concept is used

Evidence and governance

  1. Percentage Price Oscillator TA-Lib · first party technical publication

    Supports: preferred label, short definition, technical definition

    Limits: Moving-average type, denominator-zero handling, signal line, and histogram must be frozen by the consuming methodology.

Reviewed by
fintech-builder-batch-007
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.