Monday, February 25, 2008 9:08:56 AM
interesting look at the anatomy of a pincher chart.
I'm not ever going to claim I know everything and I am terrible about describing why I like or dislike a chart. Many of the plays I post are pincher or pincher related in some way. Here's a couple things I really look for that seems to work really well.
If you aren't up on pinchers and their charts I would recommend checking out the Pincher plays board
http://investorshub.advfn.com/boards/board.asp?board_id=10585
great board with lots of information described in a way that I could never tell it.
This chart has the perfect set up I like to look for. Notice the decline in PPS from higher prices then all of a sudden you get a sharp drop then a nice curving bottom and it begins to rise again. Call it a fish hook, a Reverse J whatever you want but it usually plays out very well for short term plays. Notice how the indicators all start lining up as it rounds the bottom, it's just loading itself for that big push upwards more times than not.
IMO it is well worth our time to catch these early, put them on radar and watch to see if they are going to produce of just fizzle out. More times than not they will produce and one needs to be ready to move when they do as they will move fast.
I'm not ever going to claim I know everything and I am terrible about describing why I like or dislike a chart. Many of the plays I post are pincher or pincher related in some way. Here's a couple things I really look for that seems to work really well.
If you aren't up on pinchers and their charts I would recommend checking out the Pincher plays board
http://investorshub.advfn.com/boards/board.asp?board_id=10585
great board with lots of information described in a way that I could never tell it.
This chart has the perfect set up I like to look for. Notice the decline in PPS from higher prices then all of a sudden you get a sharp drop then a nice curving bottom and it begins to rise again. Call it a fish hook, a Reverse J whatever you want but it usually plays out very well for short term plays. Notice how the indicators all start lining up as it rounds the bottom, it's just loading itself for that big push upwards more times than not.
IMO it is well worth our time to catch these early, put them on radar and watch to see if they are going to produce of just fizzle out. More times than not they will produce and one needs to be ready to move when they do as they will move fast.
A tornado is like a stock, it takes just the right conditions to form a huge one but once it forms, nothing can stop it!
my posts are only my opinions, nothing more
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