PPS P 3

Card Set Information

Author:
jcocrat
ID:
238824
Filename:
PPS P 3
Updated:
2013-10-05 08:28:36
Tags:
PPS
Folders:

Description:
Up
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user jcocrat on FreezingBlue Flashcards. What would you like to do?


  1. P 3 Entry Alert
    Signals that a trade is forming
    • Alert applied first to the 30 minute chart, and then to the
    • 60 minute chart after the 30 minute chart goes through the confirmation
    • process.

     


    • Bullish
    • divergence signals an undercurrent of change brewing (seen on RSI) or
    • Wm%R)
    • RSI
    • indicator to point and start heading up.
    • Positive
    • candle on the chart, and the 8 EMA moving up and toward the 13 EMA.
    • Black
    • PPO and ADX lines have come close to each other.
    • PPO
    • histogram blocks are narrowing and heading upward.
    • ADX
    • line begins pushing away from black PPO line and +DI line is point and
    • moving up, while –DI line points and heads down.
  2. P 3 Confirmation Buy
    Signal
    • These should happen in conjunction with each other. These
    • buy signals should be first applied to the 30 minute chart, and then to the 60
    • minute chart after the 30 minute chart goes through the confirmation process.

     


    • The
    • PPO lines crosses up over its signal line.
    • The
    • histogram crosses the zero line.
    • +DI
    • crosses up and over the –DI line (wait for a +DI cross up before
    • entering).


    • Once the alerts and confirmation signals have taken place on
    • the 30 minute chart, you then look for the same alerts and apply the same
    • confirmations to the 60 minute charts before actually entering a trade. (Sometimes
    • they happen at nearly the same time)
  3. P 3 Exit Rules
    • Look for these alerts on the 60 minute chart. Remember there
    • is often a wobble on the PPO that will produce some of these alerts, so look at
    • the PPO to see if that is what it appears to be. A second or third area of
    • weakness (wobble) is likely to be the true exit.

    • Alert:   1. RSI drops
    • from overbought area.

    •             2. 8 EMA
    • drops close to 13 EMA, appears as if it might cross.

    •             3. Negative
    • candles (in conjunction with other alert indicators).

    •             4. WM%R
    • drops down below -20.

    •             5. PPO
    • histogram blocks begin to narrow downward.

    • 6. Black ADX line flattens or curls
    • downward, and +DI starts to head down and –DI starts to head upward.
  4. P 3 Confirm Sell Signals:
    • 1. Crossover of the PPO over its
    • signal line.

    •             2. Cross of
    • the 8 EMA over the 13 EMA.
  5. Price Surge System - P 3 Squeeze Stages
    • 1.     The PPO and ADX black lines (thick) lines come close
    • together.

     

    • 2.     The PPO line crosses up over its signal line and the
    • ADX black (thick) line pushes away from the PPO line as it if is repulsed by
    • it.

     

     

    • 3.     As the Squeeze continues to unfold, the PPO and ADX
    • lines will move further and further away from each other.

     

    • 4.     It is only when the +DI line turns up and eventually
    • crosses over the –DI line that the price will “really” move upwards. The PPO line
    • cross itself can only take the price so far. If the +DI falters and doesn’t
    • continue by taking control, the squeeze is likely to fail and resqueeze because
    • the price will go flat or head back down.

     

     

    • 5.     Quite often as the PPO line is moving upward it will
    • weaken for a period of time, drop back and test the support of the PPO line.
    • The PPO line will then act as a trampoline and the PPO line will bounce up from
    • there. There are times that it will do this twice during the climb up.

     

    • 6.     While the PPO line advances upward and the +DI line
    • has crossed up and over the –DI line, the ADX Strength line will turn up to
    • support the new uptrend. I call this the sweet spot or in the Life Cycle of a
    • Squeeze DVD, it is called the adult stage of the squeeze pattern.

    • In
    • this stage of the patter the PPO and ADX thick lines run parallel to each
    • other.

     

    • In
    • this stage of the patter the PPO and ADX thick lines run parallel to each
    • other. As long as the lines remain in this formation, the price will continue
    • up.

     

    • 7.     The last stage and exit is when the PPO and ADX line
    • turn and start heading     down. This is
    • a clue to exit.

What would you like to do?

Home > Flashcards > Print Preview