PPS P 3 1/2
Home > Preview
The flashcards below were created by user
on FreezingBlue Flashcards.
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
- divergence signals an undercurrent of change brewing (seen on RSI) or
- indicator to point and start heading down.
- candle on the chart, and the 8 EMA moving down and below the 13 EMA.
- PPO and ADX lines to be close to each other.
- histogram blocks to be narrowing downward.
- line pushing away from black PPO line and -DI line to be pointing and
- moving up, while the +DI line points and heads down.
P 3 ½ Confirmation
- 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.
- PPO lines crosses down over its signal line.
- histogram crosses the zero line.
- crosses up and over the +DI line (wait for a -DI cross up before
- 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.
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).
- 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.
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.
Price Surge System - P 3 ½ Squeeze
- 1. ADX and PPO come close together as they mimic each
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.
What would you like to do?
Home > Flashcards > Print Preview