News 
Market Data 
Discover
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
|
Followers
|
790
|
Posters
|
|
|
Posts (Today)
|
0
|
Posts (Total)
|
58715
|
|
Created
|
07/06/07
|
Type
|
Free
|
| Moderator charger | |||
| Assistants pj McMulligan Tina wolfgangrene jimmenknee interloper | |||
Thank you EVERYONE for making us a HUGE success! You guys ROCK.......let's keep making lots of $$$$
Special thanks to Durkkdiggler for his awesome job with the ibox header!
Please visit him here: Diggler's House of Images
PPO & ADX
Definitions:
The PPO (Percentage Price Oscillator) is a momentum indicator that tells us the percentage, above or below the long-term indicator, that a stocks price falls. So, when the PPO ‘pinches’ it was at -40%. This means that the stock was trading -40% below is long-term average price. It was grossly oversold.
The ADX(Average Directional Index) is an indicator that shows the strength of a trend. Measured on a scale from 0 to 100, values below 20 are considered weak and values above 40 are considered strong. It is important to understand that the ADX does not indicate whether a trend is bullish or bearish only it’s strength
Good scans to get you started!
Charger's Scan (Stockcharts) - http://investorshub.advfn.com/boards/read_msg.aspx?Message_id=33854076&txt2find=scan
SimpleGreen's Scan (Stockfetcher) - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31539713
Crable's Pincher Scan (Stockcharts) - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35020410
Starter Scans (Stockcharts) - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35047573
captain america's Scan (Stockcharts) - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35233571
People often think that pinchers are only for BUY signals and not SELL signals unless the candle breaks down the MA(20). If someone tells you this, please remember that Soapy told you to slap such people and call them an idiot to their face. Also people often think that the PPO/ADX pincher is the king of pinchers (which may be true) but such pincher plays require the MA(20) to be your "golden egg" stop loss. But this too is utter nonsense when playing a pattern given a pincher. For example, consider the chart below for Deckers Outdoor Corporation in which a rising wedge can be seen using the green trendlines. As we all know, such a wedge is inherently bearish and needs a sound exit as to retain a profit. But how does a pincher tell you when to exit?
Unlike entry, which can be a total pain, the exit is quite simple to nail given the ability to look beyond the ADX/PPO pincher which has NO INFORMATION on when to exit other than: "Oops, we hit the MA(20) and I just lost considerable gains. DOH! I feel like I rode FFGO and GLCC back to 0.0001!" Since we're here to make money, we don't want to be the MA(20)-idiot that gave up 30% of profit due to an ineffective stop loss methodology. Thus we should consider appealing to a pincher as a signal to jump ship and take profits. The trick to this is to look at the PVO/STO pinch as a signal to exit. The chart below illustrates how to find such a pinch and is pretty much the entire story. So, please keep in mind that an ADX/PPO pinch may tell you when to enter, but the PVO/STO tells you when to exit if and only if you can define a pattern for the candlesticks. Also, for those who want to exit at the top of a swing, notice how the exit keeps you above the MA(20); an exit leaving more profit in your pocket.
Happy Trading.
|
Posts Today
|
0
|
|
Posts (Total)
|
58715
|
|
Posters
|
|
|
Moderator
|
|
|
Assistants
|
AI
