PPS P 3 1/2

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Author:
jcocrat
ID:
238825
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PPS P 3 1/2
Updated:
2013-10-05 08:32:05
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  1. P 3 ½ 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.

     


    • Bearish
    • divergence signals an undercurrent of change brewing (seen on RSI) or
    • Wm%R)
    • RSI
    • indicator to point and start heading down.
    • Negative
    • candle on the chart, and the 8 EMA moving down and below the 13 EMA.
    • Black
    • PPO and ADX lines to be close to each other.
    • PPO
    • histogram blocks to be narrowing downward.
    • ADX
    • line pushing away from black PPO line and -DI line to be pointing and
    • moving up, while the +DI line points and heads down.
  2. P 3 ½ 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 down 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 signals 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. After
    • entering a trade, watch for the P 3 ½ pattern to go through the stages as it
    • unfold. Look for the PPO and ADX lines to spread apart.
  3. P 3 1/2 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 rises from oversold area.

    •             2. 8 EMA rises
    • closer to 13 EMA, appears as if it might cross.

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

    •             4. WM%R rises
    • above -80.

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

    • 6. Black ADX line flattens or curls
    • downward, and +DI starts to head up and –DI starts to head downward.
  4. P 3 1/2 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 ½ Squeeze
    Stages
    • 1.     ADX and PPO come close together as they mimic each
    • other.

     

    2.     –DI Rising.

     

    3.     PPO crosses down and over its signal line.

     

    4.     –DI crosses +DI and eventually the ADX line.

     

    5.     PPO wobbles against the signal line.

     

    6.     Spread apart of PPO and ADX lines.

     


    Exit – Rollover of ADX line and drop of –DI.

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