These should happen in conjunction with each other, but one may happen before the other.
- 1. The PPO line crosses down over its signal line
- 2. The histogram crosses the zero line
- 3. -DI crosses up and over the +DI line (wait for a -DI cross up before entering) If you are a risk taker and want to enter before a cross up of the -DI line, then wait for a cross of the -DI line on the earlier time frame.
After entering a trade, watch for the P3 1/2 pattern to go through the stages as it unfolds. Look for the PPO and ADX lines to spread apart.