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$$$$$$$$ MICK, $Pistol Pete$ PINCHER CHART PLAYS $$$$$$$$ RSS Feed

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Assistants $Pistol Pete$


WELCOME TO $$$$$$$$ MICK, $Pistol Pete$ PINCHER CHART PLAYS $$$$$$$$

PINCHER CHARTING PLAYS/ WITH DD - HISTORICALS - DDNOTES

$$$$$$$$ MICK, $Pistol Pete$ PINCHER CHART PLAYS $$$$$$$$
 

Pincher Plays are Short Term Moves / Movers

PPO , ADX
MACD , ADX


 

Why You Need To Care About Pincher Plays…

They occur very frequently and can often be extremely profitable.

Some stocks have recently run nearly 200% . If you knew what to look for, you could have made this play and nearly tripled your investment.

The Pattern Development

This is the first step, known as the ‘Pattern Development’ period.

As the image below, the PPO slowly dropped towards the ADX line. At the same time, the ADX was rising towards to PPO. The combination of events makes it look as if the two lines are ‘Pinching’ together which is where the name “Pincher Play’ comes from.


The Beginning Of The Play

Theis known as a  ’Pincher Play’ and it begins when the volume rises while at the same time the PPO and ADX suddenly and violently separate.

In the case of STP, it looked like this -

 

What’s Important In The Play…

The most important part of the play is the combination of events. All three indicators must react at the same time! If one indicator is missing, then the play isn’t developing yet.

It’s not uncommon for the PPO and ADX lines to eventually separate slowly and naturally. But when there is a lot of volume, they separate much more quickly in most cases. So it’s the combination of events that can lead to a run and developed of the play.

The ‘Fourth’ Indicator

While the PPO, ADX, and Volume indicators make up the necessary indicators for a perfect technical analysis of a Pincher Play, but there is another indicator that you can look at as well.

The ‘Full Stochastics’ Indicator can be used during technical analysis. It is not always reliable but in some cases you may be able to time the run using it.

The Full Stochastics will typically ‘Bounce’ off of the PPO as shown.


 

In the picture above, the blue line represents the beginning of the ‘Play’ or run.

  • The Orange Line Is The PPO
    The Green Line Is The Full Stochastics
    The Blue Line Is The Beginning Of The Run

In the case of STP, there was a ‘Bounce’ which someone could have used to indicate the ‘Play’ or run would begin very soon. Using this ‘Preview’ it is sometimes possible to buy in at a lower price and increase the plays profitability.

The Whole Picture…

Once you put all of those various indicators together and look at the whole picture for STP it will look something like this:


 

All of the indicators are the same colors as in the previous examples. This shows you the complete technical analysis to identify and profit from a ‘Pincher Play.’

Using Indicators To Judge When The Run May Stop

Trying to time the end of a run can be difficult. Some traders will simply wait until volume slows down. Others will wait for the first red candle to indicate that the run has ended.

I don’t like relying on a red candle. Often times when a long white candle develops it can immediately be followed by a long red candle. That could put your profits at risk.

In my case, if a run continues for a long period of time I try to take advantage of the situation. I wait for two indicators to point to the run potentially coming to an end and sell when there is still buying pressure.

I feel I get the best return on investment by sell when there’s plenty of happy buyers still. By doing so, I may be avoiding the risk of a long red candle altogether.

 RSI approaching or over 70

In the case of STP, the RSI never reached 70. However, it did cross 50 and eventually reach to approximately 60.

Typically speaking the closer the RSI is to 70, the more concerned I am the run will come to an end. If it goes over 70, then I expect the the end of the run is imminent.

In the picture below you can see what the RSI did from the beginning of the run all the way to the end of the run. The blue line represents the beginning of the run while the red ling indicates where the run ended.

STP's RSI Curve

full stochastics indicator

As you can see, the pullback began as soon as the full stochastics indicator crossed 80.

As you can clearly see, the RSI is a great indicator for when the run may end, but it’s not always 100% accurate. There is one indicator that is much more accurate in my opinion.

The Full Stochastics Is A Secondary Signal

Because the RSI isn’t 100% effective, I like to combine the impression of that with what the ‘Full Stochastics’ indicator says.

Typically speaking, once it shows anything over 80, it’s a good bet that the run will be coming to an end. In fact, it’s very rare for a run to maintain a +80 on the Full Stochastics indicator for any prolonged length of time.

In the case of STP, once it reach 80, the pullback began immediately and the run came to an end.


 

Covering What We’ve Learned

You can depend on Technical Analysis to be

  1. Very effective for determining if there conditions are present for a run.
    Very effective at determine the potential of that play.
    Useful for determining when a run may end.

With the ‘pincher play’ – you can normally determine the right time to buy in and when you should start thinking about selling your holdings.

In the case of STP, it was easy to begin seeing the beginning of the run. The PPO and ADX made all of the right moves and the volume was perfect. The end of the run was easily predicted by the Full Stochastics indicator, so it should have been clear when to sell any of the stock you had in it.

You should add the ‘Pincher Play’ to your arsenal as it can be very profitable in some cases.

If you have any questions, leave some comments below and I will be happy to follow up with you.

Thanks for reading and Happy Trading Everyone!!!

DISCLAIMER:
•The Board Monitor and The Board Assistants herewith, Are not licensed brokers and assume NO Responsibility for the Actions,
Investment decisions, and or Messages Posted on this Forum.
•We do NOT recommend that Anyone Buy or Sell any Securities Posted Herewith.
Any Trade entered into Risks the Possibility of Losing the Funds Invested.
•There are NO Guarantees when Buying or Selling Any Security.

 

 


 

 

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