do elaborate on the concept of a pincher play?
Posted by captain america on :
there are THREE key indicators for this set up. The PPO, ADX, and RSI (using periods of 2 and 5).
"the pinch", which is when the PPO Line and ADX Line pinch together. When this occurs you start to look for an entry point.
if i could remember how to post charts on allstocks i would show an example
Posted by wdcisco on :
First the credit of this concept goes to freto38 off ihub.... "do elaborate on the concept of a pincher play?"
No prob...I thought it was widely known..Let me try to explain :
A pincher occures when the Percentage Price Oscillator (PPO)and the Average Directional Index (ADX)(ppo/adx) curve in and pinch; hence the name "pincher play"
A key here is the Relative Strength Index (RSI) always look for a 30/30 cross and the 200ma crossover...BUY SIGNAL!
I am still learing about the pincher as well...so heres is some stuff about it off ihub.
REMEMBER - Always look for confirmations...don't just jump in with a couple of grand and get left holding the bag!!!!!!!!! Check for Volume, Volume, Volume, ALWAYS your RSI, and never trade with more than you can afford to lose!!!! I don't know how many times I have seen people put all of their eggs in one basket and LOSE IT ALL!!! INCLUDING MYSELF! Paper trade them please, at least until you get the hang of it. That goes with any type of DAY, SWING, ETC ETC ETC Trading styles!!!!!!!!
Ok, now that has been covered, there are THREE key indicators for this set up. The PPO, ADX, and RSI (using periods of 2 and 5).
Before you even think about anything else, the first thing you need is "the pinch", which is when the PPO Line and ADX Line (both labeled in chart beneath) pinch together. When this occurs (purple circle on chart), you start to look for an entry point...
Option 1 is for the traders with higher risk tolerances... meaning, they get "the pinch" but have no other 'confirmers'... this option is represented by the vertical yellow line below.
Option 2 is for traders who don't want to "walk the line" as much... this option is represented by the vertical pink line... as can be seen, this option requires the RSI(5) and RSI(2) to both have crossed 30 (in this example, the RSI(2) had already crossed, so we were just waiting for the RSI(5) to cross 30)...as can be seen below, the RSI(5) breaks 30 and its TIME TO BUY!!
Even if you would have waited to the last possible second at bought at Option 2's closing price ($6.77), you would have had the potential to make 36%...
** IMPORTANT ** These set-ups have heavy resistance at the Parabolic SAR and if they break the Parabolic SAR they usually get knocked down by the 20MA. In other words, look to take some profits around the 20MA.
Important Steps For Trading Pinchers
1.Study the ADX PPO pincher charts.
2. Find the major MA's 20,50,100,200
3. Find the RSI's and aways look for a 30/30 cross on these. It's a buy signal "for a ADX PPO pincher" to confirm this is a buy signal, look on a 15minute chart with a 200MA. It must cross the 200MA, so the 30/30 rsi's cross with conjuntion of a 15min. 200MA cross is the pincher buy!
NOTE: on subs below a penny, wait for Parabolic SAR or 20d break an hold as a buy signal..if they back off the Parabolic SAR sell note: if the RSI14 breaks 50 the PPS will more than likly go higher!
4. Find the Parabolic SAR. Iis it below or above the 20MA? If the Parabolic SAR is below the 20MA, buy as it crosses the Parabolic SAR and if it does not break and hold the 20MA, sell. If they back off the Parabolic SAR sell
5.It holds the 20MA, then its a turn chart and the 50MA will be up next. Sell if it backs off the 50MA.
6.If it holds the 50MA It will begin an uptrend most likely then your next resistance point is the 100MA. If it backs off 100MA sell.
7.If it holds the 100MA, up next is the 200MA. Sell if it backs off the 200MA.
8. If it holds the 200MA DO NOT let it fall below the 20MA and take some profit.
9. Never buy back until it breaks an holds 20MA
10. RSI14 break of 70 to 90 is a sell
by ajcmstocks:
Let me know what you guys think?
Posted by captain america on :
or that will work...lol nice job wdcisco!
Posted by captain america on :
if you mix in the 3d stochrsi (10)(20)(30) and look for the cci(48) to move above the -100 line that will give you a better confirmation.
Posted by wdcisco on :
Thanks capt'n...lol..
I will check that out.
Posted by wdcisco on :
WLM PINCHER READY. UP 23% TODAY! Look for good entry IMO.
Posted by wdcisco on :
I am making an entry in WLM monday. I will post my entry and exit.
Wish me luck Posted by PCola77 on :
Okay, I understand the concept, but I'm failing to see the pinch. Is it that the PPO and ADX get closer together? And if so, isn't it "pinching" from July 16th on?
Just trying to understand better. Thanks.
Posted by wdcisco on :
Yes...the ppo and adx get close together and form a pinch. but you have to find the right entry and exit that is the key with pinchers.
Find the RSI's and aways look for a 30/30 cross on these. It's a buy signal "for a ADX PPO pincher" to confirm this is a buy signal, look on a 15minute chart with a 200MA. It must cross the 200MA, so the 30/30 rsi's cross with conjuntion of a 15min. 200MA cross is the pincher buy! Read my post above. Let me know if you have any other questions Posted by captain america on :
PPO Line(12,26,9) is less than or equal to -10 ADX Line(14) is greater than or equal to 40
Here is a stock chart scan (basic) for those who have the subscription.
pincher scan • For the last market close: • All Stocks with... • Daily PPO Line(12,26,9) for today is less than or equal to -10 • Daily ADX Line(14) for today is greater than or equal to 40
Posted by wdcisco on :
quote:Originally posted by PCola77: And if so, isn't it "pinching" from July 16th on?
Cap'ns right...The pincher starts getting really serious in November... You have to look for the signs to enter and exit though...
Like I said I am still learning too...I really think we can make some great money off the "P.P.P." thoery...GL! If anyone wants to post their scans..please do!
Posted by captain america on :
well i guess that didnt work..lol
Posted by PCola77 on :
Why wouldn't the initial trigger have been on 8/7 on the first chart? I see the PPO is less than -10 and the ADX is greater than 40. What changes on the 12th to cause the yellow line?
Posted by captain america on :
thr rsi 2 and rsi 5 needed to both cross above the 30 line to confirm a solid signal. the rsi 5 crossed on the 12th.
Posted by wdcisco on :
quote:Originally posted by PCola77: Why wouldn't the initial trigger have been on 8/7 on the first chart? I see the PPO is less than -10 and the ADX is greater than 40. What changes on the 12th to cause the yellow line?
Look at the RSI cross the 30...I mean sure you could have gotten in on 8/7 it just depends how risky you want to be. There also is a possiblity it will not follow through....Thats why I wait for the signals.
Posted by wdcisco on :
I always seem to post right after you capt'n lol!
Posted by PCola77 on :
Still not seeing how "Option 1" is triggered, but I'll stick to "option 2" for now. When I have some free time I'll program this into my backtester and see if it produces good results historically.
Posted by captain america on :
Posted by captain america on :
crap! well i guess i need to work on posting charts..lol
Posted by captain america on :
Posted by wdcisco on :
Here capt'n lol!
Posted by captain america on :
help ! how did you do that..lol
Posted by wdcisco on :
Click the first little mini chart you had...SO ITS FULLY EXPANDED RIGHT CLICK GO TO PROPERTIES HIGHLIGHT FULL URL AND COPY PASTE ON BOARD PUT THE FULL URL IN BETWEEN THESE TWO. [IMG] [/IMG] GOOD LUCK! LOL.
Posted by captain america on :
thank you wdcisco
Posted by wdcisco on :
no prob. man, thanks for the chart Posted by wdcisco on :
In WLM AT .39...Holding for some major gains imo.
Posted by captain america on :
ency pincher watch
Posted by captain america on :
Posted by captain america on :
arga another possible pinch play
Posted by captain america on :
tous ..maybe another pincher to watch
Posted by wdcisco on :
NICE PINCHERS! I will keep an eye on those! Thanks, Alex
Posted by BooDog on :
Far out guys. Well done. These are the plays I like hunting for. I can't do the fancy chart posting but I'll pass on what I find out there!
Major board mark!!
Posted by wdcisco on :
I got in wlm at .39 out at .44 when the news came out.
How do you give board marks?! lol.
Posted by BooDog on :
quote:Originally posted by wdcisco: I got in wlm at .39 out at .44 when the news came out.
How do you give board marks?! lol.
I wish there was a way. Trying to remember what I had for dinner last night is hard enough. LOL.
Posted by wdcisco on :
LMAO BOODOG!
WOW! Cap'n's have all gone up since he posted... nice man!
Posted by captain america on :
a few to put on watch for monday
Posted by captain america on :
sgn Posted by captain america on :
Posted by wdcisco on :
Those look good. How do you post the charts here? I tried and stockcharts wouldn't let me. Posted by T e x on :
Looks like he has a paid account...
you can post links real easy--just click on "linkable" at stockcharts...
to post *any* image, you have to "host" them somewhere...read about UBB markup, to the left of your reply window... <====
Posted by wdcisco on :
Oh...awesome..thanks Tex!!!
Posted by captain america on :
quote:Originally posted by wdcisco: Those look good. How do you post the charts here? I tried and stockcharts wouldn't let me.
tex is right i have the subscription.. i suggest getting one..imo its one of the best things i ever did. the 10 min charts are worth the money during the trading day.
Posted by wdcisco on :
quote:tex is right i have the subscription.. i suggest getting one..imo its one of the best things i ever did. the 10 min charts are worth the money during the trading day.
Thanks cap'n, I will look into that...What are you paying right now?
Posted by captain america on :
right now im paying $20 for the "extra charting" very cool if you ask me not to mention the scan engine that comes with the sub.
not sure if i need the real time charting yet but my sub is up next week sometime so i might try it out.
Posted by wdcisco on :
quote:Originally posted by captain america: right now im paying $20 for the "extra charting" very cool if you ask me not to mention the scan engine that comes with the sub.
not sure if i need the real time charting yet but my sub is up next week sometime so i might try it out.
That sounds really handy...the $20 plan sounds like the best for me right now ...thanks! Posted by captain america on :
on the move
Posted by terence on :
prhn snzhe evci
Posted by captain america on :
howdy terence! prhn doesnt look like its pinching (adx/ppo),snzhe needs a 30/30 cross (rsi2 rsi5) and evci needs more volume lil scary on the knife drop for me;)
Posted by captain america on :
agix .74x.75
Posted by captain america on :
mondays pincher watch list update... wlgc 2.02 up +.12 +6.32%(high of 2.19 ) sgn 1.07 up +.23 +27.38%(high of 1.10 ) sstr 1.71 down -.07 -3.93% Posted by wdcisco on :
Not bad at all... Posted by captain america on :
quote:Originally posted by terence: prhn snzhe evci
nice call Terence!
Posted by captain america on :
quote:Originally posted by wdcisco: Not bad at all...
hey wdcisco! how was your day?
Posted by wdcisco on :
quote:Originally posted by captain america:
quote:Originally posted by wdcisco:
hey wdcisco! how was your day?
Not bad at all... You rakin' in the money today?
Posted by captain america on :
Im sitting on my dpdw and cmmi freebies playing agix (major short position) sold sgn today accumulating more gw .
Posted by wdcisco on :
I sold my dpdw and cmmi..I am now trying to focus on daytrading, pinchers...Theres a lot to be learned...
agix looks real good for short...what did you get in at?
Posted by T e x on :
I think he means AGIX has a major short that needs to be covered...
Posted by wdcisco on :
Can you give me an example...? I am not sure I understand? Posted by captain america on :
AGIX $ 0.73 AtheroGenics Inc. 0.06 Shares Short 6,365,200 Days to Cover (Short Ratio) 16.3 Short % of Float 19.83 % Shares Short - Prior 6,802,300 Short % Increase / Decrease -6.43 % Squeeze RankingTM -306 % from 52-Wk HIGH ( 20.03 ) -2643.84 % % from 52-Wk LOW ( 0.61 ) 16.44 % % from 200-Day MA ( 2.56 ) -250.68 %
% from 50-Day MA ( 1.85 ) -153.42 % Price % Change (52-Wk) -94.80 % Trading Volume - Today 1,051,350 Trading Volume - Average 389,800 Trading Volume Vs. Avg. 269.72 % Total Shares - Float 32,100,000 Total Shares - Outstanding 39,508,492 % Held by Insiders 16.06 % % Held by Institutions 33.30 % Market Cap 28,841,199 EPS -1.36 PE Ratio Sector: Healthcare Industry: Drug Manufacturers - Other SI Record Date
MONTREAL, Nov 26 (Reuters) - Quebecor World Inc (IQW.TO: Quote, Profile, Research) said on Monday it was suspending dividend payments on its Series 3 and Series 5 preferred shares.
Putting it on my watch list anyway.
Posted by BooDog on :
a little green but not a hold imo.
Posted by Ace of Spades on :
This thread rocks...I seen it before, but never came in....I read the whole thread last night and love it!
Posted by wdcisco on :
Glad you like it...I'll post some scans after market close for ya... Posted by Ace of Spades on :
Thanks...I appreciate it!
Posted by terence on :
Right now for short term. SMTR-and dfc if you got under .17
Posted by Ace of Spades on :
AMD and PALM looks like they could be pinchers soon
Posted by wdcisco on :
quote:Originally posted by terence: Right now for short term. SMTR-and dfc if you got under .17
DFC just declared bankruptcy and SMTR doesn't look ready...IMO.
Posted by wdcisco on :
quote:Originally posted by Ace of Spades: AMD and PALM looks like they could be pinchers soon
AMD looks interesting...has to break 9.13 and stay...
AMD closed at 9.18 today! Nice green candle....could start a reversal soon! mabey a 25% bounce
Posted by wdcisco on :
Well, it fell through resistance (20ma, 50ma)on the 15 minute chart.....based on the chart it should bounce around 8.80's or 8.90's...imo..GL!!
Posted by wdcisco on :
I've got a fever...and the only perscription..is more PINCHA'...!!!!
LoL just kidding....great call and congrats if you grabbed some shares! BHS also called it at Ihub!
Posted by BooDog on :
quote:Originally posted by Ace of Spades: We aren't bragging now..are we???
LoL just kidding....great call and congrats if you grabbed some shares! BHS also called it at Ihub!
Tiny bit? I saw it on Ihub also and Where Tarheelblue posted it on penny profilers. Very nice call from Tarheel but he will tell you as he did me - he's a TA player not the FA for the most part. This one was sweet. Glad I brought it over.
Posted by wdcisco on :
Boo, Did you see AFT? Should do well tomorrow...it broke the 20ma on the daily chart....Should have a beautiful run...!!! GL everyone!
Posted by wdcisco on :
AFT up 8% today...! Posted by wdcisco on :
Pinchers to keep an eye on:
AFT AGIX BXXX CLBE FRPT GGBM OCLS PLKH PSEG SWHC
Posted by wdcisco on :
I am also really likeing MIPS...
Posted by wdcisco on :
ACA--Had an interesting hammer friday--sign of possible reversal? ACTI--This one looks ready for a nice little run AGIX--Watch this one--Has all the signs of a ready pincher! AFT--My main pincher at the moment..Lots of insider buying..Big potential! Watch for nice run this week! BXXX--Had Monsterous volume on friday...keep a close eye... FRPT--Lots of talk--way undervalued....Lookin' for 10's MRGE--Everything set-up for a nice play IMO...keep an eye on! MIPS--Bullish Engulfing Friday---WATCH WATCH WATCH! NSTK--Looks ready---We could see a nice run Monday...Needs to break that 20ma! PAL--HAS LOTS OF ROOM TO RUN! SWHC--This is another good one to watch...not something to hold overnight...IMO......
I did well with adpi today... Not a good day for pinchers... Posted by wdcisco on :
*BUMP*
Posted by Happy Valley on :
Almost forgot we had this thread...Figured I would dig it up and see if anybody else has interest in these kind of plays...Few I'm in or watching today...DYODD
ABK .60 Still could be a bit early and with MBI getting hit with bad news this could see some more downward movement. I'm looking for financials to get a boost soon myself but we'll see. Putting ABK on early radar... http://stockcharts.com/h-sc/ui?s=ABK&p=D&yr=0&mn=1&dy=0&id=p96051008324
Take a look at shipping (yes, pretty much all of them) GNK, DRYS, OCNF, EGLE, EXM, GNK, DSX, NM and i'm sure there are others.
Do your DD and take the time to understand what pincher plays are about. Don't catch a falling knife, imo wait for the momentum, money and acc/dist to start to turn back up, it could happen only for a short time.
Posted by BooDog on :
quote:Originally posted by BooDog:
quote:Originally posted by Happy Valley: MED...Popped up on a scan today...No positon but looks like a nice setup...DYODD
many financials made a pretty good show this week.
ABK .60 Still could be a bit early and with MBI getting hit with bad news this could see some more downward movement. I'm looking for financials to get a boost soon myself but we'll see. Putting ABK on early radar... http://stockcharts.com/h-sc/ui?s=ABK&p=D&yr=0&mn=1&dy=0&id=p96051008324
Watching AIB now, earnings coming out soon and some of the leaves are being shaken out - don't expect their financials to provide the boost for this one imo, but some of the pinch indicators look to be getting closer. http://stockcharts.com/h-sc/ui?s=AIB&p=D&yr=0&mn=1&dy=0&id=p96051008324 Posted by BooDog on :
quote:Originally posted by BooDog: Take a look at shipping (yes, pretty much all of them) GNK, DRYS, OCNF, EGLE, EXM, GNK, DSX, NM and i'm sure there are others.
Do your DD and take the time to understand what pincher plays are about. Don't catch a falling knife, imo wait for the momentum, money and acc/dist to start to turn back up, it could happen only for a short time.
shipping did well also this week (at least these did ) many stuck catching risistance right around their MA's (moving averages - 20dma, 50dma ect.), kinda like evrything hesitated waiting on the next market move killing some of the pinch indicators after making a fairly decent pinch.
we'll see how mflx does today, looking pretty good on my line to the 20dma for another round of consolidation. I was just looking at some of the etf charts thinking there are many just getting ready to make up their minds to see if this rally can continue or not. i stll like dow 10,2 - 10,6 for now.
btw, see the 50dma coming up on the 200dma on $indu? - i say, don't get your hopes up but would be nice to see a golden cross.
Posted by tmanfromtexas on :
hlwx is really pinching hard. The RSI is still low but you may want to watch it. TMAN...
Posted by BooDog on :
quote:Originally posted by tmanfromtexas: hlwx is really pinching hard. The RSI is still low but you may want to watch it. TMAN...
Hey there Tman!! hlxw??? setting up tman, need to dd that puppy. I do remember seeing the potential for dilution... check this out tman... http://biz.yahoo.com/e/100218/hlxw.ob8-k.html could be heading for a dead cat bounce again but we'll see.
Cheers
Posted by Free Muney on :
achn looks good.
Posted by BooDog on :
quote:Originally posted by Free Muney: achn looks good.
still watching for a couple indicators to turn, today certainly didn't help imo. MFI and momo look to be trying to recover and need to boost that rsi up a bit. putting it on radar to see how it performs. Not showing the "classic" pincher signals if you compare to something like ABK, the ppo and adx don't always have to meet like pac man but if the momo works out right it can prove a nice turn.
quote:Originally posted by Free Muney: achn looks good.
still watching for a couple indicators to turn, today certainly didn't help imo. MFI and momo look to be trying to recover and need to boost that rsi up a bit. putting it on radar to see how it performs. Not showing the "classic" pincher signals if you compare to something like ABK, the ppo and adx don't always have to meet like pac man but if the momo works out right it can prove a nice turn.
Appreciate these types of posts BooDog...Good stuff...jmo
Posted by BooDog on :
cheers Happy Valley Just my opinion. just noticed my signature was missing. Thanks for the comment.
I thought we'd be in for a ride today when the $VIX broke the 50dma this morning. it had its divergence cross over as well. See if my dow 10200 holds. a wee chance but we'll see. I think we were due for a round of consolidation, I'll take that over another crash lol.
hell of a head shake yesterday eh? lmao. guess my 10,200 line was punched today instead of yesterday.
Posted by BooDog on :
just a couple on my radar that i still need to dd... TCL, HNSN, OXBT, SPWRA, GAME, MDSO, CBKN some may not have the volume to make it even worth trying when they're ready. need to run them through my pincherplays.
Posted by BooDog on :
quote:Originally posted by Happy Valley: PENN $22.85...Few of the indicators trying to make the turn here...Worth adding to the watchlist...jmo
looking at this one closer Happy Valley, nice pick.
Posted by BooDog on :
SRZ taking a hit, keeping an eye on it for bottom
Posted by BooDog on :
as much as I don't trust HLXW looks like it started to form a base between .14 and .15 i'd say quick flips only on this one imo since there is still big chances for dilution imo.
Posted by BooDog on :
PMI cruisin back up again. lol
Posted by Happy Valley on :
quote:Originally posted by BooDog: as much as I don't trust HLXW looks like it started to form a base between .14 and .15 i'd say quick flips only on this one imo since there is still big chances for dilution imo.
Check out BRGO as well...Kind of the same deal with the dillution...Hard to tell where the knife will hit but it's on my watchlist...DYODD
Saw the move on CHGY Happy... nice! i don't know how many times I looked at it and said nope, not yet! The problem of having too many on the watchlist i guess. Major congrats even if you didn't catch the top.
Watching this one with Mav5x5...
Dynegy Inc. (Delaware) (New) Cl(NYSE: DYN) After Hours: 1.47 0.01 (0.68%) 5:53pm ET
Looking at INTC,OPXA,NTN NTN still has some dilution on the way imo, as well as opxa - both of those are fairly low volume also. Like the chart set up on INTC but we'll see how the market plays on it tommorow - lots of indicision out there imo.
Posted by Lockman on :
ENTB
Posted by NotaGuru on :
Is anyone her still using the Pincher setup? I have been experimenting with it for 2 years.
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