InvestorsHub Logo

pba

Followers 51
Posts 16723
Boards Moderated 0
Alias Born 06/06/2009

pba

Re: Ravttheman post# 222334

Thursday, 10/08/2015 12:12:27 PM

Thursday, October 08, 2015 12:12:27 PM

Post# of 370896
imo any of those could very easily lead to ...

What is a Pincher Play Stock Trading Setup? Is HHSE ready?

So where do I begin. First and foremost I did not develop the pincher play. But I will say that the pincher play is the best TA (Technical Analysis) setup I have used through the years and I have traded many profitable trading patterns and still use many of them today. But when I can find a pincher play setup, I will bypass the rest to trade a pincher play. They can be the most rewarding in such a short period of time, showing huge gains in a matter of a day or just a couple of days. Two to Ten baggers are not uncommon. So yes the pincher play is a swing trade or even a day trade. I have seen many pincher plays go from a double to ten baggers in a matter of a couple of months; these plays can be quite common. Twenty to fifty percent plays happen quite regular.

Did I develop this play? No I didn’t, I have heard many traders say that they invented the play, but the more I check around with other traders the more I learn that this TA setup has been around for many years. So it really doesn’t matter who developed the pincher, I’m not trying to take credit for it. I just enjoy trading the setup and teaching other traders about it.

The pincher play is just basically a much oversold stock that has been hammered by all the sellers and short sellers. Yes the pincher play is just the inverse of the bullish higher highs and lower lows stock climbing to new highs. The pincher play is hitting new yearly and monthly lows and is some time called a falling knife. Everyone is bashing and turned bearish on it, so for the most part it's left it out for dead. Every heard the saying, don’t catch the falling knife? Well that is exactly what we’re doing with a pincher play, but we catch it at the right time.

We catch it at the time when there are no sellers left and hardly any buyers. The shorts also have no one left to short too. So just like a stock that has made a huge bullish run and can no longer find any more buyers, because everyone is bullish. What happens, the bulls start selling to take profits and the price starts going down and the bears jump on and start shorting it down and all of this starts a selling spree. Well the same thing happens on the pincher play, there are no more sellers and the bears have no one left to short to, and they start try to take profits before the other shorts have a chance to, while the price is at the lowest point. The problem is there is not many sellers left, so it very hard for the shorts to cover without driven the stock price up quick and fast. So what happens is the shorts start stepping over each other to start covering and the price of the stock starts heading north. The bulls wake up again and see this action taken place and jump in. All this causes a lot of momentum and a short squeeze.

So the quicker you can get in on the action the greater the return will be.



Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
Recent HHSE News