I've created some notes from the thinkorswim wednesday chat with John Person.
For the past two months, I've been hurt shorting this market and decided to go back to my trading strategies to see how I can prevent this from happening in the future. I've been looking at the PPS indicator to help me determine the trend, so I don't walk in front of freight train. I've been doing the analyze of how I can use the pps indicator and it happened that John Person came on TOS. The topic of his chat was exactly what I've been working on, plus some additional pointers to confirm the PPS buy or sell signal.
I'm doing this for my trading, but if others find it helpful then I'm glad I can help.
The chat archive can found here https://www.thinkorswim.com/tos/displayPage.tos?webpage=onlineSeminar look for the 11/3/2010 chat.
My notes:
Person notes for PPS signal:
strong strength of bullish
1 close above open (green candle)
2. close above prior closes
3. close is above past of prior highs
4. forecasted R1 is higher than current R1
5. high close doji
6. close is near the high of day
if generates buy signal, then OBV should be sloping up to confirm.
Look at PPS averages, once there is a buy signal on the weekly timeframe, you buy after the stock pullback to the averages.
McClellan oscilator - if there is a sell signal generated, then it should be below the zero line to show some confirmation of the sell signal
I've already created a photo to illustrate the points. As they say a picture is worth a thousand words.
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