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PPS Technical Indicator aka Person’s Pivots

 

The Person’s Pivot Study indicator on ThinkorSwim is without a doubt my favorite of all the indicators. It’s easy, it’s effective, and oh, did I mention it’s easy…

 

The PPS study was designed and developed by a man named John Person’s. A 32 year veteran of the Futures and Options markets, he’s been just about everything from a floor trader to a broker and even an analyst, but I’ll stop there and leave the history lessons for someone better suited to it. Whether he’s a financial genius or the guy serving fries at McDonald’s, it really makes no difference to us.

 

The Person’s Pivot study is a bullish and bearish momentum indicator. The study via thinkorswim (I can’t comment on other platforms) comes packaged with two moving averages, one fast and one slow that help determine a buying or a selling signal. Don’t know what moving averages are?  Take a look at my moving averages page.

 

Interestingly, there isn’t a clear cut explanation for what triggers a buy or sell signal via the indicator. Mr. Person’s has decided to keep that to himself I suppose, but from what I can determine;

 

A signal is produced on these conditions;

 

Bullish

  1. Trend condition changes from bearish to bullish.
  2. New higher high, new higher low, new higher open, and new higher close.
  3. Close above a past high.

Bearish

  1. Trend condition changes from bullish to bearish.
  2. New lower high, new lower low, new lower open, new lower close.
  3. Close below a past low.

If anyone has more information about the construction of this indicator please share in the comments for everyone. I for one am interested to hear about it.

 

 

Whatever determines a bullish or bearish signal, it works… so I use it! Take a look at the screen shot below, then test it on your own charts to see how effective it really is.

 

I think you’ll find that of all the technical indicators out there, none is more straightforward and clear in its instruction. An up arrow means the market will move higher, and a down arrow means the market’s heading lower, that’s it. How’s that for simplicity?

 

Check it out and let me know what you think…

 

Click to Enlarge.

PPS Indicator
Technical Analysis

3 thoughts on “Person’s Pivot Study (PPS)”

  1. Hi
    Thanks for the details. But the up/down arrow do they appear at a point of time in advance to indicate bullish/bearish trend?

    Thanks

    • Yes and no. I don’t like to use it for intraday trading because the indication will come and go with price movements. I prefer PPS for swing trading or as an additional indicator on longer term trades.
      God bless,
      Jeff

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